Kakao Group and Circle entered into a strategic partnership to collaborate on blockchain payments, digital assets, and infrastructure for a South Korean won-pegged stablecoin under the country’s existing regulatory framework.
South Korean technology conglomerate Kakao Group, which includes Kakao, Kakao Pay, and Kakao Bank, announced the signing of a memorandum of understanding (MOU) with U.S. fintech company Circle Internet Group, the issuer of USDC, one of the world’s largest stablecoins by market capitalization. The partnership covers the joint development of blockchain-based payment infrastructure, digital asset solutions, and infrastructure and services for a South Korean won-pegged stablecoin.
The companies plan to combine Kakao Group’s digital ecosystem with Circle’s expertise in building global infrastructure for blockchain payments and digital assets. They’ll jointly explore new solutions for payments, settlements, and the integration of digital assets with the existing financial system. They’ll also examine long term strategies for developing next generation financial infrastructure in South Korea.
As part of the partnership, the companies also plan to explore opportunities for South Korean won-denominated stablecoins and tokenized financial services. In particular, they’ll evaluate the use of Circle’s technology to accelerate international payments, cross-border transfers, and merchant settlements. Alongside developing its own stablecoin, Kakao Group aims to build a technology foundation that will also enable other South Korean market participants to adopt stablecoin-based solutions.
Circle Chief Business Officer Kash Razzaghi said South Korea remains one of the world’s leading digital economies and has a strong regulatory framework for financial innovation. He said combining Circle’s global infrastructure with Kakao’s financial services would accelerate the rollout of new solutions in line with local regulatory requirements.
Shin Won-keun, CEO of Kakao Pay and co-chair of Kakao Group’s stablecoin task force, said the competitiveness of digital assets depends on both technology and a well developed payments and financial ecosystem. He said the partnership with Circle is expected to serve as the foundation for the next generation of financial infrastructure in South Korea.
Earlier, the South Korean government included the development of blockchain technology and the digital asset market in its economic growth strategy for the second half of 2026. The Bank of Korea is also preparing for the second phase of testing infrastructure for its central bank digital currency (CBDC), while the Ministry of Economy and Finance is testing blockchain-based settlement systems for official business expenses.
