South Korea’s Kakao Bank Advances Stablecoin Project to Development Phase
Kakao Bank, South Korea’s leading digital bank, has moved its Kakao Coin stablecoin initiative into the active system development stage. This follows Kakao Group’s internal review of its KRW-pegged stablecoin plan, shifting from strategy to technical execution.

Kakao has tasked its core affiliate, Kakao Bank, with implementation. The bank’s website confirms developer recruitment to build its blockchain-based service infrastructure. Led by its New Business Service Development Team, the effort focuses on designing backend architecture, transaction processing systems, and cryptographic key management.

The role requires deep expertise in full-node operation, token standards, and smart contracts—strong evidence Kakao aims beyond issuance toward a full-scale decentralized financial infrastructure.

The project gained momentum after Kakao founder Kim Beom-soo was acquitted of SM Entertainment stock manipulation charges in November’s first trial. Previously, Kim’s legal uncertainty jeopardized Kakao’s financial expansion—including a potential forced stake reduction in Kakao Bank from 27.16% to 10%, which would have stripped strategic control.

Kim now actively leads Kakao’s Future Initiative Center, overseeing long-term blockchain and AI strategies—including the stablecoin. Since August, Kakao has formed a Joint Task Force with Kakao Bank and Kakao Pay, holding weekly meetings to build a blockchain-based digital finance ecosystem covering settlement, tokenization, and payments.

Kakao Pay has even filed six stablecoin ticker symbols, including KKRW and KRWK. Additionally, Kakao partnered with Korea Investment & Securities and Lucent Block to develop blockchain-based STO (Security Token Offering) products.

VECS Commentary
Kakao’s move signals a strategic acceleration by an advanced economy to assert digital monetary sovereignty—not just innovating, but countering U.S. dollar–pegged stablecoin dominance. Impressively, it integrates platform, bank, and payment layers vertically—a feat unmatched globally. Yet success hinges on two factors: (1) regulatory consistency, as the ruling party’s new Digital Asset Basic Act just passed; and (2) real-world adoption beyond its closed ecosystem. Without SME, consumer, and cross-platform integration, Kakao Coin risks becoming a corporate utility token—not a true national stablecoin.
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**This news was obtained and summarized from various sources on the internet.