South Korea's KakaoPay shares soar 200% in past month amid stablecoin moves

South Korea's KakaoPay saw its shares rise over 200% in the past month amid rising anticipation that the mobile payment services giant will pursue stablecoin-related ventures in the near future. The company is a subsidiary of Kakao , one of the largest internet conglomerates in the country.

KakaoPay's stock rose 208% to 94,700 Korean won ($68.6) from 30,800 won ($22.25) on May 23, according to Google Finance data . The company's shares jumped 17.3% in local market trading on Monday morning, with the market still open.

KakaoPay started to surge in the local stock market after recently elected South Korean President Lee Jae Myung pledged to approve and promote local currency-backed stablecoins in collaboration with the private sector.

Earlier this month, a South Korean lawmaker proposed legislation to fast-track the approval of Korean won stablecoins alongside Lee's other crypto promises.

The anticipation for Kakao's potential stablecoin venture was further solidified last week, when the payments platform filed applications for six kinds of stablecoin patents — PKRW, KKRW, KRWP, KPKRW, KRWKP, KRWK. The ticker symbols appear to combine Kakao, or KakaoPay with the Korean won (KRW).

The applications were filed under three categories: electronics, financial services and IT development. Filings within financial services stipulate specific service classifications, including cryptocurrency transfers, brokerages, electronic currency payments, and token issuance.

KakaoPay told local news outlet ZDNET Korea that the patent filings were a preemptive measure to prepare for potential stablecoin regulations, and it will continue to monitor the situation.

A report from Eugene Investment and Securities stated that KakaoPay would be the primary beneficiary of stablecoin developments in South Korea, as its current business model is most receptive to stablecoin opportunities.

"When stablecoins replace payments and remittances, the ability to issue the tokens directly depends on how much in collateral assets you have," the report said . "This collateral is prepaid balance in this case."

The payment platform currently has around $429 million in advance payment balances from users, which is a dominant amount compared to its competitors. KakaoPay's top-up wallet-then-pay system is most well-suited to naturally adopt stablecoins, the report said.

Meanwhile, stablecoin legislative efforts in South Korea came in response to the fast-progressing regulatory developments in the United States. The GENIUS Act , a fundamental legislation for stablecoin and issuers, advanced out of the U.S. Senate earlier this month and is now waiting for approval from the House of Representatives.