South Korea’s Big Four Financial Groups Enter All-Out Battle Over Digital Asset Commercialization
Korean financial holding companies are now increasingly moving their digital assets into actual services and commercialization.
This year, South Korea’s major financial holding companies are rapidly shifting their digital asset strategies beyond simple technology verification toward full-scale competition for platform dominance. While the sector previously focused mainly on blockchain-based proof-of-concept testing and pilot projects, the industry is now increasingly emphasizing commercialization and revenue models such as stablecoin payments and remittances, real-world asset tokenization and digital wallet infrastructure. Competition to secure next-generation financial infrastructure is intensifying, driving a surge in strategic investments and global partnerships among financial groups.
According to the financial industry on May 20, major South Korean financial holding companies are now increasingly moving their digital assets beyond the technology verification stage and into actual service launches and commercialization. An executive at a financial holding company said, “Proof-of-concept projects have already been repeated across the financial sector for years,” adding that “the key challenge now is how to establish real business models and revenue structures.” The executive added that “competition in digital assets is also shifting beyond simple technology verification toward a battle for platform dominance.”
Infrastructure competition is particularly fierce around stablecoins, which are widely regarded as the next generation of payment networks. KB Financial Group recently completed a proof of concept for a Korean won-based stablecoin payment, settlement and remittance system in partnership with electronic payment specialist KG Inicis, global Layer 1 blockchain platform Kaia and digital asset solutions firm OpenAsset. The system is designed so blockchain smart contracts are automatically executed during settlement through QR-code payments without requiring users to install a separate digital wallet.
In the cross-border remittance sector, Hana Financial Group, which has strong foreign exchange capabilities, is responding aggressively. In February, Hana Financial completed a blockchain-based overseas remittance proof of concept in collaboration with Dunamu, the operator of cryptocurrency exchange Upbit. Using Dunamu’s proprietary blockchain network known as the GIWA Chain, Hana Financial aims to supplement the existing SWIFT-centered foreign currency remittance system while advancing remittance services capable of real-time transactions and settlements. The group plans to pursue commercial service launches in the future through regulatory designation as an innovative financial service.
Strategic investments and global partnerships among financial holding companies are also expanding rapidly. Hana Financial recently drew market attention after deciding to invest around 1 trillion won, equivalent to about $662.78 million, in a stake in Dunamu. It marks the first time a South Korean financial holding company has directly acquired an ownership stake in a digital asset exchange. Based on the investment, Hana Financial is also pursuing new wealth management services integrating traditional financial assets and digital assets. In its first-quarter report this year, Hana Financial stated that it aims to “become a leading wealth management player driving the digital asset business.”
Last month, KB Financial discussed strategic cooperation measures with Pantera Capital, the first blockchain-focused venture capital and hedge fund firm in the United States. The two sides reportedly shared trends in the global blockchain market and investment models while reviewing potential cooperation in digital asset investments and fund management. Woori Bank signed a memorandum of understanding in April with stablecoin infrastructure company MoonPay to build won-based stablecoin infrastructure. The bank had previously established a cooperative relationship through an equity investment in digital asset custody company BDACS.
Competition in digital asset internal controls is also intensifying. Shinhan Bank recently became the first bank in South Korea to establish a blockchain-based on-chain monitoring system. The goal is to manage money laundering risks by directly analyzing transaction flows and wallet addresses on blockchain networks. Woori Bank is currently operating a “digital credential wallet” service using blockchain-based decentralized identity technology to issue digital professional credentials for professionals such as lawyers. The move is interpreted as part of a broader shift from traditional document-based qualification verification toward blockchain-based digital authentication.
However, concerns are growing within the industry that delays in establishing digital asset regulations could hinder service expansion and weaken industrial competitiveness. Discussions over the second phase of legislation for the Digital Asset Basic Act have been postponed to the second half of the year, leaving uncertainty surrounding stablecoin issuance and distribution standards, the scope of bank participation and institutionalization of tokenized securities. In contrast, efforts to institutionalize the sector are accelerating in the United States after the CLARITY Act, which establishes a framework for digital asset regulation, recently passed the Senate Banking Committee.
An official at a financial holding company said, “Ongoing regulatory uncertainty in South Korea places major constraints on financial companies trying to actively pursue new technology experiments and business validation,” adding that “as a result, even business models that could be fully implemented domestically may become structurally dependent on partnerships with leading overseas companies.” The official warned that “over the long term, this could weaken the competitiveness of South Korea’s financial industry.”
Jasmine Choi
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