Lee Jae-myung, leader of South Korea’s Democratic Party, has proposed the introduction of a stablecoin pegged to the Korean won to encourage domestic crypto investors to focus on the local market rather than overseas platforms.
Currently, South Korean regulations prohibit the issuance of won-backed stablecoins, leaving local exchanges dependent on U.S. dollar-based alternatives.
To support this initiative, he proposed implementing an integrated monitoring system and reducing transaction fees, aiming to make cryptocurrency more accessible while ensuring government oversight.
Crypto exchanges in South Korea recorded $40.8 billion in asset outflows, between January and March, nearly half of which were linked to foreign stablecoins, according to The Korea Herald.
Lee’s proposal is part of a wider digital asset agenda, which also advocates for the legalization of spot cryptocurrency exchange-traded funds (ETFs).
Both Lee and his rival, Kim Moon-soo of the People Power Party, have expressed support for the launch of spot crypto ETFs.
Lee’s ambitious push to reshape South Korea’s digital asset landscape, through regulatory reform, stablecoin innovation, and support for spot crypto ETFs, reflects a growing recognition of the country’s evolving financial future, so could this bold, tech-forward agenda become a defining factor that paves Lee’s path to the Blue House in the upcoming election scheduled for June 3, 2025?
