EXPLAINER Institutions jockey for position in Korea's crypto market

People walk past Bithumb's customer lounge in Seoul, March 4. Yonhap

Korea's crypto market was long defined by retail-led speculation. Now, the center of gravity is shifting to banks, brokerages and tech platforms as they race to secure an early foothold in the institutionalized market before the regulatory framework is finalized.

According to Tiger Research, which tracked 196 partnerships across 150 institutions, the Korean market is seeing competition intensify on three key fronts: stablecoins, security token offerings (STOs) and custody.

"The current race for partnerships is less about gaining a first mover advantage and more about shaping the regulatory landscape," said Kim Jeong-ho, a research analyst at Tiger Research. "Companies are trying to position themselves before the framework is finalized, so that the structures they establish now can influence future regulatory standards."

Stablecoins: high on agenda, but stalled in National Assembly

Stablecoins dominated last year's legislative agenda, but none of the related bills passed the National Assembly. Key issues remain unresolved, including issuer eligibility and a proposed 20 percent cap on major shareholders in crypto exchanges.

Tech giant Kakao has emerged as a major contender, with KakaoTalk, KakaoBank and Kakao Pay forming a joint task force to build a "super wallet" backed by the group's deep reach in the Korean market.

Shinhan Card has emerged as the most active card issuer in this area, focusing on converting its existing payment network into blockchain rails after signing a memorandum of understanding with Solana in April.

Crypto exchanges are also actively participating, as the inclusion of won-denominated stablecoins in the regulatory framework could allow them to expand beyond trading platforms into a broader range of digital asset services.

Dunamu, operator of Korea's largest crypto exchange Upbit, is pursuing a won-denominated stablecoin business with Naver Financial based on its own blockchain, GIWA. Bithumb, the second-largest exchange, has chosen to first secure dollar stablecoin distribution channels through partnerships with Circle.

Korea Web3 Institution Relationship Map / Courtesy of Tiger Research

STOs: building infrastructure for commercialization

Brokerages are focusing on STOs, a market set to open in January 2027 following legal amendments this January. Hana Institute of Finance projects that Korea's STO market will reach 367 trillion won ($242.8 billion) by 2030.

Shinhan Securities has stood out for moving quickly to build out its own STO infrastructure. In 2024 it launched Project Pulse, a blockchain-based platform designed to support the issuance and distribution of STOs. This year, it secured a major shareholder position in Nextrade, an alternative trading system, giving it an in-house structure that spans from issuance to trading.

Mirae Asset Securities has gone overseas. In Hong Kong, the firm has issued digital bonds and obtained a retail digital asset license. It plans to launch a mobile trading system in June to begin serving local retail investors.

Custody: live infrastructure, absent institutional flows

Four custody providers have established themselves in the Korean market, each securing domestic and overseas financial and technology partners. However, most posted companywide losses last year, as they are still waiting for institutional capital to flow, according to Tiger Research.

The most active player is BDACS, based in Busan. The company is expanding its infrastructure through cooperation with Woori Bank and partnerships with overseas digital asset firms, including Circle, Galaxy and GK8. It is also conducting a proof of concept for KRW1, a won-denominated stablecoin.

BitGo Korea entered the domestic market on the back of BitGo, the global custody provider that safeguards more than $70 billion in assets. Hana Financial Group and SK Telecom each hold stakes in BitGo Korea.

KODA was founded by KB Kookmin Bank, Hashed and Haechi Labs, setting it apart from rivals through a structure that combines traditional financial capital with crypto-native venture expertise.

KDAC is a more traditional finance-led custodian, with commercial banks including Shinhan Bank and NH NongHyup Bank among its key shareholders.

Naver Chairman Lee Hae-jin, center, speaks during a press conference to announce Naver Financial's merger with Dunamu at Naver headquarters in Seongnam, Gyeonggi Province, November 2025. From left are Naver Financial CEO Park Sang-jin, Naver CEO Choi Soo-yeon, Lee, Dunamu Chairman Song Chi-hyung and Dunamu CEO Oh Kyoung-suk. Courtesy of Naver

Exchanges regain strategic value despite trading slump

Although crypto trading volume has fallen sharply recently, exchanges are regaining value as key customer gateways for crypto-related services. This has recently prompted traditional financial firms and tech companies to secure stakes in major exchanges.

The race is most intense around Dunamu, while Naver's acquisition of Dunamu remains under review by the Fair Trade Commission (FTC). Hana Financial Group and three Samsung affiliates — Samsung Securities, Samsung SDS and Samsung Card — have acquired stakes of 6.55 percent and 4 percent, respectively, in the company. Hanwha Investment & Securities raised its own stake from 5.94 percent to 9.84 percent.

Mirae Asset Group has also entered the race, acquiring a 92 percent stake in Korbit through affiliate Mirae Asset Consulting. The deal is under review by the FTC.

Korea Investment & Securities acquired a 20 percent stake in Coinone, while global crypto exchange OKX separately bought another 20 percent.

Overseas crypto companies are therefore recalibrating their Korea strategies, moving away from retail community-building toward partnerships with major firms, such as Solana's partnership with Shinhan Card and Avalanche's ties with Mirae Asset.