South Korean Banks Scramble To Launch Crypto Services Ahead of Looming Regulatory Shake-Up
Seoul's financial giants are in a cutthroat race—deploying digital asset services before regulators slam the door. The clock's ticking as Korea's FSA finalizes its crypto framework, forcing banks to innovate or get left behind.
Who's leading the charge? Kookmin and Shinhan are reportedly testing custody solutions, while Woori pivots to tokenized securities. All while dodging the irony: traditional finance rushing to embrace what it once called 'a speculative bubble.'
One banking exec quipped (off the record): 'We're not betting on crypto—we're betting on not missing the next revenue train.' Meanwhile, retail investors eye spreads wider than the Han River.
Thread: South Korea’s banks & the crypto pivot
Big lenders are mobilizing for upcoming stable-coin laws. “As discussions on legalizing stablecoins heat up rapidly, the banking sector is now taking proactive measures.” https://t.co/PtLxmhsYIJ (1/5)
— Kris Townsend (@kristownsendd) August 4, 2025
Banks tasting blood in the water are closing in fast to take advantage of the situation. For instance, Woori has launched a specialised Digital Asset Team that oversees initiatives ranging from stablecoin development to the rollout of digital wallet services.
This newly formed nine-member team is a part of Woori’s New Business Alliance Platform Department.
Additionally, the bank has also signed a partnership agreement with a blockchain startup to revive its crypto custody ambitions. The publication mentions that Woori has also partnered with several unnamed entities to build a stablecoin consortium.
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KB Kookmin Bank Joins South Korean Crypto Fray
While Woori Bank has somewhat of an early lead, KB Kookmin isn’t resting on its laurels. The bank formed a Digital Asset Response Council in June of this year as an initiative to drive a cohesive, group-wide strategy across its KB Financial Group affiliates.
Since then, the council has prepared for potential policy shifts by drafting a series of rapid response scenarios and is currently exploring partnerships with external players such as insurance firms, credit card issuers, securities companies and asset managers.
The council aims to strengthen strategic alignment in the crypto space across the KB ecosystem.
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KEB Hana Forms Working Group To Tackle Issues Around Won-Pegged Stablecoins
Another major South Korean bank, KEB Hana Bank, has formed a working group, pulling in talent from key departments to tackle issues around won-pegged stablecoins. This working group is to lay down the groundwork for future digital infrastructure projects.
KEB Hana has copied a bit of Woori’s homework in developing a joint venture crypto custody initiative, eyeing international expansion.
Meanwhile, Shinhan Bank has assembled a crypto task force made up of 20 employees.
Other banks in the country, including the Upbit partner K Bank and Busan Bank, are also on war footing to prepare for the reforms.
In the backdrop of all this, the trademark race is in full swing with KB applying for 32 marks tied to won-backed stablecoins and 49 more linked to foreign currency pegged tokens.
The publication adds, “if stablecoins are legalised, financial firms need to quickly launch related services to secure a lead in the market.”
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Key Takeaways
- South Korean banks accelerate crypto initiatives amid the region’s regulatory reform momentum
- Woori Bank, KB Kookmin Bank and KEB Hana are currently leading the charge
- KB Kookmin has filed 32 trademarks for won-backed stablecoins and 49 for foreign currency pegged tokens
