Kaia pledges ₩1B in stablecoin as South Korean payment stocks rise

Kaia (CRYPTO:KAIA), a blockchain project backed by tech giant Kakao, has announced plans to launch a stablecoin pegged to the South Korean won, aligning with President Lee Jae-myung’s pro-crypto policy stance.

The initiative comes amid growing momentum for regulatory reform under Lee’s administration, which supports private-sector stablecoin issuance despite the Bank of Korea’s exclusive right to issue currency.

Lawmaker Min Byoung-dug, who heads the Democratic Party’s Digital Asset Committee, is preparing to introduce the Digital Asset Basic Act.

The proposed legislation is expected to establish a legal framework for stablecoins and broader digital asset regulation.

Kaia’s stablecoin project carries weight due to Kakao’s dominant role in South Korea’s digital economy, with services spanning messaging, navigation, and payments.

The announcement led to sharp gains in South Korean payment stocks on June 9, with Kakao Pay and rival Danal each rising nearly 30%.

Kakao Pay, which offers digital wallet and QR payment systems, is seen as a major potential beneficiary of a domestic stablecoin launch.

Kaia emerged from the merger of Kakao’s Web3 unit Klaytn and LINE-backed Finschia, creating a unified blockchain platform with expanded capabilities in the evolving Web3 space.

Market sentiment suggests growing optimism that regulatory clarity will accelerate under the new administration.

President Lee appointed Kim Yong-beom, a former vice finance minister and blockchain advocate, as chief policy officer to shape crypto policy.

The Digital Asset Basic Act is expected to legalise won-pegged stablecoins and support innovation in the financial sector.

A recent decision by the Seoul High Court to indefinitely postpone one of Lee’s criminal trials has removed a major political obstacle, strengthening the administration’s ability to push forward its agenda.

At the time of reporting, the Kaia (KAIA) price was $0.1395.