Unprecedented Stock Surge Fueled by Stablecoin Expectations

South Korea’s leading payment platform, KakaoPay, has seen its shares skyrocket by more than 200% in the past month, driven by mounting investor optimism that the company is poised to enter the local stablecoin market.

According to Google Finance data, KakaoPay’s stock surged from 30,800 Korean won ($22.25) on May 23 to 94,700 won ($68.60) by late June—a staggering 208% increase.

The momentum continued on Monday morning, with shares jumping another 17.3% in early trading.

Government Backing and Legislative Momentum

Due to its digital wallet infrastructure and QR code payment system, Kakao Pay has been widely regarded as a potential beneficiary of the domestic stablecoin.

The firm is the fintech arm of Kakao, whose Web3 subsidiary developed by Klaytn blockchain,is now merged with Japanese messenger Line-backed Finschia to form Kaia.

The rally in KakaoPay’s stock began in earnest after newly elected President Lee Jae Myung pledged to approve and promote the issuance of Korean won-backed stablecoins in partnership with the private sector.

This commitment was further reinforced by a lawmaker’s proposal earlier this month to fast-track legislation for local stablecoin approval, signaling strong government support for digital currency innovation.

KakaoPay has taken concrete steps to position itself at the forefront of South Korea’s stablecoin ecosystem. Last week, the company filed applications for six stablecoin-related patents—including PKRW, KKRW, KRWP, KPKRW, KRWKP, and KRWK—across three categories: electronics, financial services, and IT development.

These patents cover a wide range of services, from cryptocurrency transfers and brokerage to electronic payments and token issuance.

A KakaoPay spokesperson told ZDNET Korea that the patent filings are a preemptive move to prepare for upcoming stablecoin regulations, and the company will continue to monitor policy developments closely.

Why KakaoPay Is Poised to Lead

Analysts at Eugene Investment and Securities argue that KakaoPay is uniquely positioned to benefit from stablecoin adoption in South Korea.

The company’s business model—centered on a top-up wallet-then-pay system—aligns perfectly with the requirements for stablecoin issuance.

“When stablecoins replace payments and remittances, the ability to issue the tokens directly depends on how much in collateral assets you have. This collateral is prepaid balance in this case.”

KakaoPay currently holds approximately $429 million in user prepaid balances, far outpacing its competitors.

South Korea’s push for stablecoin regulation is also influenced by global developments, particularly the progress of the GENIUS Act in the United States.

The legislation, which recently advanced outside of the U.S. Senate, aims to establish clear rules for stablecoin issuers and is now awaiting approval from the House of Representatives.

Despite the surge in KakaoPay’s share price, some analysts remain cautious. JPMorgan, for example, has warned that the rally may be overextended, citing uncertainty about the actual rollout and impact of stablecoin policies.

However, the broader market remains bullish on KakaoPay’s potential to lead the next wave of financial innovation in South Korea.