South Korea’s adoption of KRW stablecoins faces challenges due to unresolved regulatory policies. These restrictions impact financial markets, fintech initiatives like Kakao’s project, and overall market confidence. President Lee Jae-myung emphasizes the need for regulation, while Governor Rhee Chang-Yong stresses the importance of fintech inclusion. The uncertain regulatory landscape hinders the progress of KRW stablecoin development, particularly impacting projects like Kakao’s offering. This uncertainty leads to potential setbacks in market growth and has wider implications on capital flows, payment systems, and domestic financial services. While long-term stability is anticipated, current barriers limit the widespread adoption of KRW stablecoins.