South Korea’s biggest lenders are ramping up efforts to enter the digital asset space, with a sharp focus on stablecoins and crypto custody services.
The flurry of activity comes ahead of new legislation expected to clear the way for financial institutions to issue and operate stablecoins under a formal regulatory framework.
Banks like Shinhan, Woori, KEB Hana, and KB Kookmin had first explored crypto-related ventures as early as 2018 and 2019.
But those early plans stalled when the Moon Jae-in administration cracked down on crypto trading and banned initial coin offerings.
That stance has shifted dramatically under current President Lee Jae-myung, who entered office in June 2025 and has openly supported digital finance initiatives.
Lee Jae-myung is the current president of South Korea and a prominent member of the Democratic Party.
The change in tone from the top has sparked a revival across the banking sector.
Legislative committees within the National Assembly are now reviewing a range of pro-crypto reforms, with particular attention on stablecoin issuance and digital asset services provided by traditional finance players.
Major lenders are acting swiftly, forming in-house task forces and dedicated departments to lay the groundwork for stablecoin products and blockchain initiatives.
Woori Bank has launched a Digital Asset Team under its New Business Alliance Platform Department.
This nine-member team is tasked with overseeing digital wallets, custody services, and the bank’s stablecoin strategy.
It has also signed a new business agreement with a blockchain startup, signalling a return to crypto custody plans that were shelved years ago.
According to Maeil Business Newspaper, Woori had already begun forming a consortium of companies for a stablecoin project by November 2023.
At KB Kookmin Bank, a Digital Asset Response Council has been in operation since June.
It coordinates a group-wide strategy that spans across KB Financial Group affiliates, including insurance, card, and securities firms.
The council is developing rapid-response scenarios for future regulatory updates and is actively reviewing partnerships with external organisations.
Shinhan Bank has pulled together a 20-member task force dedicated to digital asset development.
The bank is also one of several institutions filing for trademarks related to stablecoins.
KB has submitted 32 applications linked to stablecoins pegged to the Korean won and 49 for tokens tied to foreign currencies.
Meanwhile, KEB Hana Bank has created a crypto-focused working group that includes representatives from across its business units.
The group is working on both infrastructure and strategy for stablecoin initiatives and is reportedly involved in a joint venture tied to crypto custody.
The digital push isn’t limited to the nation’s largest banks.
K Bank, which operates closely with major exchange Upbit, has launched its own digital asset task force.
Busan Bank, a regional lender, maintains a blockchain research team examining the broader use of distributed ledger technologies across finance.
The private sector’s urgency stems from expectations that new legal frameworks will soon be in place.
An official from the banking industry told Maeil Kyungjae,
“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.”
With both institutional and retail demand for stablecoins rising—especially for popular dollar-pegged tokens like USDT and USDC—banks see a clear opportunity.
As neighbouring countries in Asia also move towards regulating digital assets, South Korea’s finance sector is determined not to be left behind.
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