South Korean Exchange Upbit Partners with Naver Pay to Launch Won Stablecoin

Upbit, South Korea’s largest cryptocurrency exchange, has joined forces with Naver Pay, the country’s leading mobile payment platform, to develop a Korean won (KRW)-backed stablecoin aimed at revolutionizing digital payments and reducing the persistent "kimchi premium" in crypto trading.

The partnership, announced on July 1, 2025, leverages Naver Pay’s 30 million users and 5 million affiliated merchants to integrate blockchain technology into mainstream finance, with Upbit providing critical crypto infrastructure.

The initiative follows President Lee Jae-myung’s pledge on June 29, 2025, to foster a won-based stablecoin market, a move prompted by the Bank of Korea’s decision to pause its central bank digital currency (CBDC) plans. This regulatory shift has opened the door for private-sector innovation, with Upbit and Naver Pay positioning themselves as frontrunners.

Tackling the Kimchi Premium Through Blockchain Integration

“Naver Pay is ready to take the lead in the won-based stablecoin market by capitalizing on our robust infrastructure,” said Park Sang-jin, CEO of Naver Pay, highlighting the platform’s extensive reach and payment expertise.

The KRW stablecoin aims to address the "kimchi premium," a price disparity where cryptocurrencies trade at higher prices in South Korea due to fiat restrictions. By enabling on-chain swaps with global stablecoins like USDT or USDC, the project seeks to enhance liquidity and streamline cross-border remittances.

A representative from Dunamu, Upbit’s parent company, emphasized that the stablecoin will serve as “a stable value storage and trading tool” while supporting Naver Pay’s payment ecosystem.

South Korea’s crypto market, one of the most active globally, faces challenges from strict capital controls that limit fiat conversions. The stablecoin could minimize price volatility and reduce reliance on traditional banking systems, potentially transforming how digital assets are traded and used for payments.

Competitive Landscape and the Road Ahead

However, the project’s scope and timeline remain subject to regulatory approval, with details still under discussion as South Korea refines its stablecoin framework.

Competition is already heating up, with major banks like KB Kookmin and Shinhan exploring their own KRW stablecoin initiatives.

Backed by Naver Pay’s vast payment network and Upbit’s dominant trading volume, the partnership is well-positioned to lead Korea’s stablecoin race. Inspired by global regulatory trends, the project aims to bridge crypto and everyday payments — marking a major step toward mainstream adoption as clearer rules emerge.