1、ab17 September 2025Global ResearchKorea FintechAPAC Focus:Can stablecoin be revolutionary in Korea?Recent developments have boosted expectations for the adoption of KRW stablecoin in Korea.Congressmen from the majority ruling party have submitted bills outlining the basic regulatory framework for di

2、gital assets,including stablecoin.Among the several financial service segments where stablecoin can be used,we think it is most likely to penetrate the payment market if the legislation passes the national assembly.We believe fintech firms would have competitive advantage over traditional banks,give

3、n their proven track record in stronger user experience(UX)/user interface(UI)and customer acquisition capability.In our coverage,we think Kakaopay(KKP)could be the key beneficiary.Hence,we reiterate our Buy rating on KKP and raise our price target from Won39,000 to Won68,000(link).Will stablecoin b

4、e introduced in Korea?High expectation for the adoption of stablecoin has been building on the support of several lawmakers.Despite financial authorities,including the governor of BoK and FSC,concerns around stablecoin as they believe it could create financial system instability and potentially lead

5、 to illegal activities(eg,money laundering)and technical failure,those supporting stablecoin believe:1)a foreign currency-pegged stablecoin can,if not already,be in circulation even without a KRW stablecoin;2)other markets aside from the US,including Hong Kong and Singapore,are also building framewo

6、rks for fiat-linked stablecoins;and hence,3)there is increasing need to monitor and secure sovereignty over KRW stablecoin in the Decentralized Finance(DeFi)space.How big can KRW stablecoin be?We believe stablecoin can easily penetrate the payment market.As we expect its transaction costs to be lowe