South Korea’s Largest Payments Processor to Bring Solana Stablecoin Payments to its 220,000 Merchants

South Korea's largest payment platform, KG Financial, has signed an MoU with the Solana Foundation to bring stablecoin payments to its merchant network. The move marks one of the most significant efforts yet to integrate blockchain-based payment infrastructure into a large-scale commercial payments ecosystem in South Korea.

KG Group processes more than KRW 25 trillion in annual transaction volume and serves a vast merchant base nationwide. Through the new partnership, the company aims to explore stablecoin payments and blockchain settlement systems that could eventually support approximately 220,000 merchants connected to KG Group's payment infrastructure.

The agreement reflects a broader trend unfolding across South Korea, where financial institutions, payment companies, and blockchain networks increasingly explore how stablecoins and digital assets could support payments, settlements, and cross-border transactions.

KG Group Advances Digital Asset Payment Infrastructure

According to KG Financial, discussions with the Solana Foundation began in April. Since then, both parties have conducted joint proof-of-concept projects focused on stablecoin issuance and real-world payment services.

The company stated that these tests demonstrated both the commercial viability and technical feasibility of the proposed business model. Following the results of those proof-of-concept initiatives, KG Financial decided to proceed with plans for stablecoin-based payment services and broader digital asset initiatives through the newly signed agreement.

Under the partnership, KG Financial and the Solana Foundation will focus on several key areas. These include developing stablecoin-based payment and settlement systems, advancing digital payment proof-of-concept projects, and integrating blockchain functionality into existing regulated payment networks.

The collaboration will also involve integration with payment gateway services and prepaid card platforms already operated within the KG ecosystem. KG Financial plans to work closely with affiliate KG Inicis to accelerate commercialization efforts. The company intends to leverage KG Group's extensive payment gateway infrastructure, prepaid mobile payment capabilities, and merchant network of approximately 220,000 businesses.

The group stated that it is actively reviewing plans to extend digital asset payment capabilities throughout its broader merchant ecosystem through its technology partnership with Solana.

Solana Builds Momentum in South Korea

The KG Inicis partnership does not stand alone. Solana has recently secured several notable collaborations in South Korea's financial sector. Yesterday, June 22, Toss Bank announced a strategic partnership with the Solana Foundation to test blockchain-based global remittance and settlement infrastructure. Toss Bank serves more than 15 million customers and became the first South Korean internet-only bank to sign a direct one-to-one strategic cooperation agreement with the Solana Foundation.

The bank plans to evaluate whether stablecoins can support international remittances and settlement processes. It will also examine blockchain-based payment models and assess opportunities for future financial services involving digital assets and stablecoins. Toss Bank said it intends to gradually test blockchain infrastructure across several areas, including overseas remittances, payments, tokenized assets, and digital asset services.

Park Jin-hyeon, Head of Strategy at Toss Bank, described the collaboration as a starting point for applying blockchain-based digital financial infrastructure to financial services already operated by the bank.

Meanwhile, Solana Foundation Chair Lily Liu said the partnership could help create a faster and smoother global remittance experience by combining traditional financial systems with blockchain efficiency.

Regulatory Developments Shape the Environment

These partnerships and infrastructure projects arrive as South Korea accelerates efforts to establish a legal framework for digital assets and stablecoins.

On April 8, the ruling Democratic Party proposed the Digital Asset Basic Act. The proposed legislation seeks to regulate digital asset issuance, trading, custody, disclosure requirements, and market conduct. The framework would also require reserve backing and redemption obligations for fiat-linked stablecoins, creating clearer standards for issuers operating in the country.

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