South Korean Banks Race Against Time to Launch Crypto Services Before Regulatory Overhaul Hits

Seoul's financial giants are in a mad dash to secure their slice of the crypto pie—before regulators slam the oven shut.

Banks that spent years dismissing digital assets are now scrambling to build custody solutions, trading desks, and tokenized asset platforms. The irony? They're begging for regulatory clarity while lobbying to shape the rules in their favor.

Behind closed doors: Execs are sweating over compliance costs, terrified they'll miss the 2026 implementation deadline. Meanwhile, retail investors keep piling into decentralized alternatives—because nothing says 'trust the system' like banks suddenly loving the tech they called a scam three years ago.

One banking CEO quipped (off the record): 'We'll adopt blockchain when it helps our bonuses, not a minute sooner.'

South Korean Banks: Poised to Act Fast

Banks such as Shinhan and Woori formed initial plans to launch crypto-related business operations as far back as 2018-2019.

However, they were ultimately forced to shelve these when the government of former president Moon Jae-in decided to ban initial coin offerings and effectively sideline the crypto industry.

President Lee Jae-myung, however, has talked enthusiastically about crypto since his election in June this year.

Lawmakers are poised to respond by legislating. A raft of pro-industry reforms is now on the desks of various National Assembly committees.

Banks, sensing a change in political winds, are responding fast.

Woori has launched a specialized Digital Asset Team responsible for “various digital asset-related businesses, including stablecoins” and digital wallets.

This nine-member team is part of Woori’s New Business Alliance Platform Department.

Woori Bank has also signed a business agreement with a blockchain startup as it looks to resurrect its crypto custody plans.

It is also working on a stablecoin consortium with various unnamed companies, Maeil Kyungjae wrote.

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KB’s Plans

Rival bank Kookmin Bank (KB), meanwhile, launched a Digital Asset Response Council in June.

It wants to create a systematic, group-wide response that covers its wide range of KB Financial Group affiliates.

This council has developed a range of rapid response scenarios for possible future policy changes.

It is also reviewing collaboration possibilities with “external partners,” including insurance firms, credit card issuers, securities firms, and asset management companies.

The council’s stated aims involve fostering strategic coordination in the crypto sector among its many affiliates.

Crypto Plans in Motion

KEB Hana Bank has created a crypto working group comprising relevant department members from each of its affiliates.

The group is believed to be working on matters related to won stablecoins. It is also looking at infrastructure requirements for future projects.

Like Woori, KEB Hana is also working on a joint venture crypto custody project and is eyeing the global market.

And Shinhan Bank has created a crypto task force that comprises “approximately 20 employees.”

Banks have also applied for a whole host of crypto and stablecoin-related trademarks. KB, for instance, has applied for a total of 32 trademarks related to won-pegged stablecoins and 49 trademarks related to foreign currency stablecoins.

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Other banks are also rushing to prepare for reforms. These include the Upbit partner K Bank, which recently established a digital asset task force.

Regional banks are also active, with Busan Bank operating a blockchain team that looks at all “aspects of blockchain technology.”

South Korean banks believe, the newspaper added that “if stablecoins are legalized, financial firms need to quickly launch related services to secure a lead in the market.” An unnamed South Korean banking industry official told the news outlet:

“Although the reforms are yet to be implemented, they will take time to put into action. That is why we believe that, by preparing in advance, we can enter the market quickly after lawmakers introduce new legislation.”