South Korean Banks Position for Digital Asset Market Amid Regulatory Shift

South Korean financial institutions are proactively positioning themselves to enter the burgeoning digital asset market, anticipating a wave of new legislation set to significantly reshape the country’s financial landscape. Major players, including Woori, KB Kookmin, Shinhan, and KEB Hana, are swiftly forming specialized teams and task forces, signaling a strategic pivot towards crypto and stablecoin services. This aggressive preparation underscores a fundamental shift in regulatory posture under the current administration.

• South Korean financial institutions are strategically preparing for entry into the digital asset market.
• This preparation is driven by anticipated new legislation under the administration of President Lee Jae-myung, which took office in summer 2025.
• The current government’s pro-innovation stance marks a significant departure from previous policies, such as the ICO ban under the Moon Jae-in administration.
• Leading banks like Woori, KB Kookmin, and Shinhan are establishing dedicated teams and pursuing initiatives in cryptocurrency custody and stablecoin development.
• Upcoming legislation is expected to provide clear frameworks for stablecoin issuance, crypto custody, and potentially enable traditional financial institutions to operate digital asset exchanges.

A Shifting Regulatory Landscape

This strategic alignment by the banking sector follows a notable political transition. The administration led by President Lee Jae-myung, which took office in the summer of 2025, has publicly advocated for digital finance innovation and blockchain deployment. This stance marks a significant departure from previous policies, such as the ban on Initial Coin Offerings (ICOs) that characterized the preceding Moon Jae-in administration. The current government’s supportive environment has prompted a revitalization of South Korea’s digital asset market. In response, lawmakers are actively reviewing a suite of pro-industry reforms in the National Assembly, with expected passage in the coming months. This anticipated legislation is poised to establish clear legal frameworks for stablecoin issuance, crypto custody services, and potentially enable traditional financial institutions to operate digital asset exchanges.

Strategic Initiatives by Financial Giants

In anticipation of these regulatory developments, leading banks are undertaking substantial internal restructuring and development. Woori Bank, for instance, has established a dedicated Digital Asset Team within its New Business Alliance Platform Department. This team is tasked with researching and developing digital asset services, including re-engaging in cryptocurrency custody through a business agreement with a blockchain startup and forming a consortium to enter the stablecoin market. Similarly, KB Kookmin Bank launched a Digital Asset Response Council in June, coordinating a comprehensive approach across its various financial affiliates, including credit card, insurance, and securities firms, to integrate digital asset strategies across their operations.

Broadening Engagement and Intellectual Property

Beyond organizational adjustments, banks are also securing intellectual property in the digital asset domain, demonstrating a long-term commitment. KB Kookmin Bank has notably filed 32 trademark applications for Korean won-backed stablecoins and an additional 49 for stablecoins pegged to other major currencies, signaling ambitious plans for digital currency issuance. Shinhan Bank has assembled a 20-member crypto task force to diligently research and develop a wide range of digital asset services. Regional financial institutions are also preparing; K Bank, a digital-first bank, has established a specialized digital asset task force, and Busan Bank’s blockchain research team is actively evaluating distributed ledger technology applications for various financial use cases. These proactive measures collectively highlight the industry’s strong belief that early preparation will enable rapid and effective market entry once regulatory clarity is fully established, thereby cementing their positions in South Korea’s evolving digital economy.