Major South Korean financial institutions, including Hana Financial Group and BNK Financial Group, have formed a stablecoin alliance as the government moves to legalize won-denominated stablecoins. This initiative comes as the ruling Democratic Party seeks to overturn a 2019 ban, allowing domestic companies to issue these coins. The alliance plans to establish a special-purpose company to issue a won-pegged stablecoin once the ban is lifted. The central bank remains hesitant, advocating against big tech involvement in stablecoin issuance. However, regulators propose a compromise allowing only major bank consortia to issue stablecoins. This has prompted financial groups to form alliances in anticipation of the legislation, expected to be finalized by the end of next month. Meanwhile, Kakao has also been active, forming a task force to develop a Kakao-branded stablecoin.