Korea’s major credit card companies are moving to secure regulatory approval to launch Korean won-pegged stablecoin services as competition from global tech giants and fintech startups intensifies.
Under the Korea Federation of Credit Card Associations, card issuers have formally asked lawmakers to revise the Credit Finance Act to allow stablecoin issuance and management. This echoes similar efforts by banks to create their own won-based digital currencies.
Executives argue that stablecoins are essential for staying competitive as brands like Visa and Amazon develop proprietary tokens. Meanwhile, crypto transaction volumes in Korea have more than doubled over the past year, reflecting rising consumer demand.
Card companies see stablecoins as a way to diversify revenue beyond shrinking card fees and to offer faster, lower-cost payments. However, legal and regulatory challenges remain significant. Current rules prohibit payment providers from handling digital assets, and any approval would likely require full fiat reserves, real-time audits, and strict anti-money laundering measures.
Authorities are considering pilot programs under a regulatory sandbox to test stablecoin services. If approved, Korean card companies could become some of the first traditional financial firms in Asia to integrate stablecoins into mainstream payments.
As the debate unfolds, card issuers are preparing proposals to highlight the benefits, aware that banks and fintech rivals are also racing to define the future of Korea’s digital payments landscape.
