Won Stablecoin Pilots Work. South Korea's Law Still Doesn't.

Kaia is an EVM-compatible layer-1 chain created by merging Kakao's Klaytn and LINE's Finschia networks. It is well-positioned for these projects because both major Korean bank pilots have run on it.

The Legal Gap: Who Controls Issuance

The Busan trial comes as South Korean financial groups race to be first with a won stablecoin while the legal framework remains unclear. KB Financial Group, parent of the country's largest lender, completed a similar Kaia pilot in May with KG Inicis and OpenAsset. That test used QR payments at Hollys Coffee and a cross-border remittance to Vietnam that converted the won stablecoin to a dollar stablecoin. The transaction settled in under three minutes at roughly 87% lower cost than SWIFT.

Banks are intentionally moving faster than regulation. The Digital Asset Basic Act is stalled over a disagreement between the Bank of Korea and the Financial Services Commission on who controls stablecoin issuance. Until that rulebook is written, no won stablecoin can reach customers.

Confirming factors

• The FSC and BOK resolve their jurisdiction dispute, clearing a path for issuance rules.
• A second major bank (Shinhan, Woori) completes a similar pilot on a different chain, showing the model is portable.
• The National Assembly advances the Digital Asset Basic Act with a stablecoin title.

Invalidating factors

• The jurisdictional deadlock extends into 2027, freezing all won stablecoin launches.
• The BOK insists on direct issuance authority, which banks oppose, killing the private-sector model.
• A security incident on Kaia or another pilot chain triggers regulatory caution.

BNK Busan Bank said the partners will work toward expanding the model into policy funds, digital vouchers, a possible central bank digital currency, and other won-stablecoin services. Whether any of it reaches customers depends on when Seoul finishes its rulebook.