South Korean presidential front-runner proposes won-based stablecoin
Lee Jae-myung, leader of South Korea’s Democratic Party, proposed a stablecoin tied to the Korean won to curb capital outflows and enhance financial sovereignty. He emphasized that a won-based stablecoin would help retain domestic wealth and reduce dependence on foreign digital assets. Current laws prevent the issuance of domestic stablecoins, leading to significant asset outflows from local exchanges, primarily linked to foreign stablecoins. Lee's broader digital asset strategy includes legalizing spot cryptocurrency ETFs and allowing institutional investments in cryptocurrencies under specific conditions. Concerns have been raised by economists about potential inflation of the money supply and loss of monetary control due to stablecoins. The Democratic Party established a Digital Asset Committee to develop cryptocurrency policies and address regulatory issues. A proposed Digital Asset Basic Act would create a legal framework for cryptocurrencies and require stablecoin issuers to maintain substantial reserves and obtain regulatory approval.
