Korean Won Stablecoin in the Works as Upbit and Naver Pay Capitalize on Crypto Reform

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Key Takeaways:

• Upbit and Naver Pay are collaborating to develop a Korean won-backed stablecoin amid new crypto regulations.
  
• South Korea’s government and banks are actively supporting stablecoin initiatives to strengthen domestic control over the digital currency market.
  
• Crypto adoption is booming, with over a quarter of South Koreans aged 20–50 already invested in digital assets.

South Korea’s stablecoin ecosystem is heating up as major players in fintech and crypto move quickly to capitalize on new regulatory clarity. On Tuesday, June 1, Upbit, the country’s largest cryptocurrency exchange, and fintech platform Naver Pay revealed plans to jointly develop a Korean won-backed stablecoin.

This strategic partnership follows South Korea’s increasing government support for domestic stablecoins as a counterweight to USD-dominated offerings.

Naver Pay to Lead Stablecoin Consortium

According to statements from Dunamu, the operator of Upbit, Naver Pay will take the lead in developing the stablecoin, while Upbit will support the initiative. “We will specify the scope and methods of cooperation as soon as the relevant system is established,” a Dunamu official confirmed.

Naver Pay had previously announced on June 26 its intent to lead a consortium aimed at launching Korean won-backed stablecoins. This move is driven by growing regulatory support and a desire to shape the domestic digital payments landscape.

South Korean Government Pushes for Won-Based Stablecoins

The collaboration comes at a time of accelerating government interest in digital currency innovation. On June 29, President Lee Jae-myung endorsed the development of stablecoins pegged to the Korean won, signaling strong political backing.

This support aligns with ongoing efforts by the ruling Democratic Party, which since May has pushed to finalize frameworks for government-compliant won-based stablecoins—before dollar-based coins like USDT and USDC gain further traction in the country.

South Korean Banks Join the Stablecoin Race

Upbit and Naver Pay aren’t alone in their ambitions. Major financial institutions such as KB Kookmin Bank, Woori Bank, Shinhan Bank, and Citibank Korea have joined the stablecoin race, forming their own consortium to explore won-pegged digital assets.

Also Read: Upbit Lists SAHARA Token with KRW, BTC, and USDT Pairs

The increasing institutional involvement reflects South Korea’s goal to establish itself as a leader in the global stablecoin market—while also catering to its highly active domestic crypto audience.

With 27% of South Koreans aged 20 to 50 already holding crypto and 70% of them open to increasing their holdings, the demand for regulated, won-backed digital assets is likely to grow. The combination of public trust, regulatory clarity, and technological infrastructure could give Korean stablecoins a competitive edge.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.