Kakao calls in Circle for won-stablecoin reconnaissance 🇰🇷

Kakao Group has signed a strategic memorandum of understanding with Circle Internet Group to explore payment infrastructure for a won-backed stablecoin, the companies said Thursday. The agreement brings Kakao, Kakao Pay and Kakao Bank together with the USDC issuer to study how Circle's blockchain and global payment network could connect with Kakao's consumer platforms and financial services.

Under the MOU, the companies said they will examine stablecoin payments, cross-border remittances, merchant settlement and links between existing financial systems and blockchain networks, along with support for tokenized financial services. No products or launch timelines were disclosed. Cointelegraph said it reached out to Circle and Kakao Group but did not receive a response before publication.

The move comes as South Korea works toward legislation governing won-pegged stablecoins, with policymakers weighing reserve, redemption and issuer oversight requirements. Lawmakers have introduced competing proposals aimed at reducing reliance on the US dollar, though the process has stalled over whether banks should hold a majority stake in issuers. The Bank of Korea has argued in favor of bank-led issuance, while the Financial Services Commission has warned that eligibility limits could restrict competition.

In its economic growth strategy announced on July 14, the government listed advancing the Digital Asset Basic Act among its priorities for the second half of 2026. Other South Korean financial and technology firms have already begun testing the technology, including Kbank's April partnership with Ripple on blockchain-based remittances and KB Financial Group's May pilot covering stablecoin issuance, offline merchant payments and cross-border remittances through the Kaia blockchain. KB Financial Group said it was preparing to introduce stablecoin services once regulations take effect.