South Korean Local Stablecoin Operator Posts Record Profits

Business appears to be booming for a company operating an increasingly large number of South Korean local stablecoins.

Per Fn News, the Korea Minting and Security Printing Corporation (KOMSCO) – the company that has printed banknotes and minted coins for the nation’s treasury for the past 70 or so years – has posted record-high sales and profits, coinciding with a slew of stablecoin launches in conjunction with city and provincial authorities around the country.

The company said its annual operating profits are now over USD 9.5 million, with sales of USD 435 million posted, despite the fact that paper-and-coin cash issuance has actually declined sharply of late.

The bulk of its new business appears to have come from local governments’ drives to replace paper and card-based gift certificates with smartphone-based alternatives that use blockchain technology and tokens pegged 1:1 with the South Korean won.

The media outlet reports that the company is also working on carving out a role for itself “in the central bank digital currencies (CBDCs) era,” with “China and other major countries interested in CBDCs.” The Bank of Korea’s own CBDC project is also moving along apace, with a legal advisory team launched this week.

The company also announced yesterday that it will pay its employees 5% of their salaries in the Onnuri token – another stablecoin and gift certificate program that is accepted by small businesses such as traditional market stalls.

Per Hanguk Kyungjae, for company executives, the number will be higher, with 10% of their salaries payable in Onnuri. The company said the move will help support small businesses affected by the coronavirus pandemic.

As previously reported, KOMSCO has had a busy 2020 – with deals signed as recently as last month to begin blockchain-powered stablecoins in the cities of Naju and Suncheon in South Jeolla Province, the resort city of Boryeong.

In April, the company also struck a deal with Jeongeup, a tourist destination in North Jeolla Province.