South Korean Candidate Proposes Won-Based Stablecoin Plan

2 mins mins

Key Points:

Main event: Lee Jae-myung proposes won-based stablecoin plan.
Potentially reduces reliance on foreign stablecoins.
Addresses significant capital outflows from South Korea.

Lee Jae-myung, South Korea’s Democratic Party leader and presidential candidate, proposed a stablecoin pegged to the Korean won on May 20, 2025. The plan aims to reinforce South Korea’s financial sovereignty by countering capital outflows tied to foreign stablecoins.

This proposal addresses substantial currency outflows linked to USD-pegged digital assets, highlighting the challenges facing South Korea’s financial autonomy.

Lee Jae-myung’s Stablecoin Proposal Targets 28.4 Trillion Won Outflow

Lee Jae-myung announced a plan to introduce a stablecoin based on the Korean won at a policy meeting. South Korea’s law currently prohibits local stablecoins, leading to a dependency on USD-pegged options like USDT. These conditions have spurred significant capital outflows.

The proposal includes the establishment of government monitoring systems and reduced transaction fees. In addition, legislation requiring stablecoin issuers to maintain significant reserves and obtain regulatory approval aims to ensure financial stability. Lee Jae-myung has emphasized, “The proposed system would rely on a ‘one-to-one reserve system’ to ensure stability.”

The South Korean political landscape is abuzz, with candidates debating the strategy’s merits. Lee Jun-seok of the Reform Party questioned the plan’s safeguards in a recent debate. Critics like Shin Bo-sung have voiced concerns about monetary policy implications.

Expert Analysis: Won-Stablecoin Could Strengthen Financial Sovereignty

Did you know? South Korea has witnessed significant capital outflows due to reliance on foreign stablecoins. In Q1 2025, around 28.4 trillion won outflow was linked to these digital assets, showcasing the importance of Lee’s stablecoin proposal in reinforcing financial sovereignty.

Current data from CoinMarketCap shows Tether USDt (USDT) trading at $1.00, holding a market cap of $151.61 billion with a dominance of 4.55%. The 24-hour trading volume reached $85.92 billion, marking an 18.95% decrease, with stable minor price fluctuations over various periods.

tether-usdt-daily-chart-67 — Tether USDt(USDT), daily chart, screenshot on CoinMarketCap at 09:51 UTC on May 20, 2025. *Source: CoinMarketCap*

Analysis from the Coincu team suggests that implementing a won-based stablecoin could enhance national financial sovereignty. A regulatory framework may need to evolve to balance financial innovation with stability, ensuring policymaker support.