Naver Financial, the fintech arm of South Korean tech giant Naver, is finalizing a wallet service for a local stablecoin initiative in Busan—the nation’s second-largest city. As reported by Seoul Economic Daily on Tuesday, the project is now in its final verification phase and slated for launch next month.

Developed in partnership with venture firm Hashed and the Busan Digital Asset Exchange (BDAN), the wallet targets Busan residents and tourists, enabling fiat-to-stablecoin conversion into Dongbaek-jeon—a region-specific digital currency.

Dongbaek-jeon previously operated as a cashback-based local payment system—similar to a community credit card—managed by BNK Busan Bank. The bank is now transitioning it from a prepaid points model to a blockchain-backed stablecoin, aiming to revitalize the local economy.

The stablecoin already boasts an average monthly user base of 1.5 million, per reports. Naver plans to integrate it into its existing Naver Pay Wallet—though full functionality may be deferred until South Korea establishes formal regulations for fiat-pegged stablecoins.

Development began in May 2025: Hashed and BDAN provided technical infrastructure, while Naver leveraged its mature payment network.

This move coincides with Naver’s strategic merger with Dunamu—the parent company of Upbit, Korea’s largest crypto exchange—via a share swap. Upon completion, Dunamu is expected to list on Nasdaq as Naver’s wholly owned subsidiary.

Financial performance supports this ambition: Naver reported Q3 revenue of ₩3.14 trillion (US$2.32 billion) and operating profit of ₩570.6 billion (US$422.67 million). Dunamu achieved 35% quarter-on-quarter revenue growth (₩385.9 billion/US$262.87 million) and a 145% net profit surge (₩239 billion/US$162.80 million).

VECS Commentary
This initiative marks a pivotal step in municipal-level stablecoin adoption, merging microeconomic goals (SME support, tourism) with Web3 infrastructure. What sets it apart: Dongbaek-jeon isn’t a speculative experiment—it’s the digital evolution of an already vibrant, real-world system used by millions. This is organic adoption, rooted in utility, not hype. Yet its success hinges on two conditions: (1) clear national regulatory clarity—without which formal financial integration stalls; and (2) gradual decentralization—to prevent it from becoming a centralized monetary control tool. If executed transparently and inclusively, Dongbaek-jeon could become a global blueprint for cities seeking sovereign, sustainable digital economies.