Korean companies are joining the stablecoin race, with Upbit and Naver Pay becoming the latest entrants in the market.

South Korean firms are increasingly taking advantage of the new regulatory clarity around stablecoins. On Tuesday, June 1, Upbit, the nation’s largest crypto exchange, and Naver Pay, a fintech payment platform, joined forces to develop a Korean won stablecoin.

“It seems that Naver Pay will take the lead and Dunamu will cooperate,” stated an official from Dunamu, the operator of Upbit. “We will specify the scope and methods of cooperation as soon as the relevant system is established.”

Earlier, on June 26, Naver Pay announced that it would be leading a consortium of companies for the introduction of stablecoins backed by the won. A part of the reason for this move is the regulatory change in South Korea, which will soon likely favor stablecoins.

South Korea to introduce new stablecoin rules

Upbit and Naver Pay initiative comes as discussions around stablecoin regulations are intensifying in South Korea. On June 29, President Lee Jae-myung pledged to allow firms to issue stablecoins backed by the national currency.

The move has stimulated significant interest in companies tied to digital assets. What is more, several major banks, including KB Kookmin, Shinhan, Woori, Citibank Korea, and more, have come together for their own stablecoin initiative.

Since May, the South Korean ruling Democratic Party has been pushing for the launch of government-backed won stablecoins. Notably, lawmakers are racing to set up the stablecoins before USD-based stablecoins gain more dominance. They hope this would enable them to achieve some level of dominance in the global stablecoin market.

South Korea is among the markets with some of the highest levels of crypto adoption. A recent report shows that 27% of its population aged 20 to 50 own crypto assets, with 70% willing to buy more.