Kaia, a Kakao-backed layer-1 blockchain, has announced its intention to launch a South Korean won-pegged stablecoin, aligning with the crypto-friendly policies of newly inaugurated President Lee Jae-myung. The pledge marks a bold move into stablecoin territory as investor confidence surges across Korean payment and fintech stocks.
Crypto-Friendly Leadership Fuels Innovation
President Lee Jae-myung, known for his progressive stance on digital assets, campaigned on promises to promote blockchain innovation and support private-sector stablecoins. His administration is backed by the Democratic Party’s Digital Asset Committee, led by lawmaker Min Byoung-dug, who is drafting the Digital Asset Basic Act. This landmark legislation aims to provide a legal foundation for stablecoin issuance and broader crypto regulation.
Kaia’s initiative adds momentum to South Korea’s evolving digital asset ecosystem, even as regulatory clarity remains a work in progress.
Legal Hurdles and Government Support
Under South Korea’s Constitution, only the Bank of Korea can issue currency. However, lawmakers are now signaling openness to private stablecoins through regulated frameworks. This shift reflects growing public demand, with nearly 60% of Koreans planning to increase crypto holdings under Lee’s tenure, according to a Korea Chamber of Commerce and Industry survey.
Market Reaction: Payment Stocks Rally
Investor enthusiasm spilled over into the stock market. Shares of Kakao Pay and rival Danal both surged 29.9%, hitting their daily upper limit during June 9 trading. Kakao Pay, known for its digital wallet infrastructure and QR code payments, is viewed as a potential driver of stablecoin adoption.
Kakao Pay’s direct link to Kaia through Kakao’s fintech and Web3 arms positions it as a central player in Korea’s stablecoin future.
Political Clearance for Crypto Push
A major obstacle to Lee’s presidency — an ongoing election law trial — was indefinitely postponed by the Seoul High Court, citing presidential immunity. This clears the political runway for Lee’s administration to implement its crypto agenda without immediate legal distractions.
Conclusion
Kaia’s stablecoin pledge and Kakao Pay’s stock rally underscore growing momentum for crypto innovation in South Korea. With policy support coalescing and legal uncertainties easing, the path is now clearer for a won-based stablecoin economy backed by one of Asia’s most tech-savvy nations.