South Korea promotes domestic stablecoins, considering it a national mission.

The South Korean government, under the leadership of President Lee Jae Myung, is promoting the issuance of a won-pegged stablecoin as a new economic priority, aimed at falling capital outflows and strengthening monetary independence.

Congressman Min Byeong-deok has proposed a law to establish a licensing mechanism and transparent regulations for stablecoin issuance organizations. The government expects the won stablecoin to be used in areas such as digital content, gaming, e-commerce, and international payments, while also helping to reduce transaction costs and attract investment.

However, some experts are concerned that the won has no global demand, and domestic stablecoins could become “disguised CBDCs” or even promote speculation. Some opinions suggest that instead, a national Bitcoin reserve fund should be established like in El Salvador.

Min rebutted that stablecoins will be issued by the private sector, not aimed at capital control, and will comply with international standards on transparency and anti-money laundering. He also acknowledged the need to balance investor protection with maintaining the decentralized spirit of blockchain.

In addition to stablecoins, President Lee also wants to promote crypto ETFs and establish a Digital Asset Committee under the presidential office.