Kakao Partners with Circle to Explore Won-Backed Stablecoin Infrastructure

Kakao Group has partnered with stablecoin issuer Circle to explore payment infrastructure for won-backed stablecoins in South Korea. Under a strategic memorandum of understanding (MOU), Kakao, Kakao Pay, and Kakao Bank will connect Circle's blockchain and global payment infrastructure with their consumer platforms and financial services.

The agreement highlights how major South Korean consumer and financial platforms are positioning themselves ahead of expected stablecoin legislation. The companies plan to examine stablecoin payments, cross-border remittances, merchant settlement, and connections between existing financial systems and blockchain networks.

South Korea has been working on a regulatory framework for won-backed stablecoins, which would establish requirements covering stablecoin issuance, collateral management, and internal controls. However, the process has stalled over disagreements about which institutions should be permitted to issue won-based stablecoins.

The government listed advancing the Digital Asset Basic Act among its priorities for the second half of 2026 in its economic growth strategy announced on July 14. Meanwhile, companies such as internet bank Kbank and KB Financial Group have begun testing blockchain technology in South Korea.