Seoul: Naver Pay, a mobile payment service operated by internet giant Naver Corp., has announced its readiness to lead South Korea's potential won-based stablecoin market. The company plans to leverage its extensive digital finance and wallet infrastructure to play a pivotal role in this emerging sector.
According to Yonhap News Agency, Naver Pay's CEO Park Sang-jin revealed during a media event that discussions have been ongoing for the past two weeks about the potential role of Naver Pay in the won-based stablecoin market. However, he noted that the matter is being approached cautiously due to the lack of current legislation.
Park emphasized that should a reasonable framework be established under authorities' review, Naver Pay is prepared to take the lead. With over 30 million users and 5 million affiliated stores, Naver Pay operates South Korea's largest mobile payment network and digital wallet service, Npay Wallet. This service is deeply integrated into the broader Naver ecosystem, which includes a wide range of services from shopping to maps, blogs, and webtoons.
Park suggested that if won-pegged stablecoins are introduced and issued by non-financial entities, they could potentially replace traditional loyalty points or mileage programs. Naver Pay's extensive ecosystem could serve as an ideal test bed for exploring such applications.
Stablecoins, which are cryptocurrencies designed to maintain a stable value by being pegged to a fiat currency or asset, have gained renewed interest in South Korea. This follows the election of President Lee Jae Myung, who advocates for allowing domestic entities to issue won-pegged stablecoins. Additionally, Bank of Korea Governor Rhee Chang-yong has expressed a positive stance on the issuance of won-denominated stablecoins during a recent press briefing.