South Korea’s opposition leader, Lee Jae-myung, has proposed the creation of a stablecoin pegged to the Korean won, arguing it would help retain national wealth and reduce reliance on foreign digital currencies.
Speaking at a recent policy forum, the Democratic Party chief emphasized that a domestically-issued won-based stablecoin could be a financial shield, strengthening the country’s monetary sovereignty and mitigating capital outflows tied to U.S. dollar-pegged assets such as USDT and USDC.
Under current South Korean regulations, issuing local stablecoins is prohibited, forcing crypto exchanges to rely heavily on dollar-backed alternatives. This dependence has reportedly led to significant capital movement overseas. Between January and March 2025, local exchanges recorded a staggering 56.8 trillion won (approximately $40.8 billion) in asset outflows, nearly half linked to foreign stablecoins.
The stablecoin initiative is one component of Lee’s broader digital asset policy, which also advocates for legalizing spot cryptocurrency exchange-traded funds (ETFs).
Both Lee and his political counterpart, Kim Moon-soo of the ruling People Power Party, have expressed support for spot crypto ETF approval in South Korea.
Lee’s policy platform also proposes allowing major institutional investors, including the National Pension Fund, to invest in cryptocurrencies, provided certain market stability conditions are met. His strategy further includes implementing an integrated crypto monitoring system and reducing transaction fees to foster adoption under state oversight.
Notably, South Korea’s ruling People Power Party confirmed that the trading of spot digital asset ETFs will be permitted by the end of this year, according to local media outlet Edaily.
Amid these developments, the Democratic Party officially launched a Digital Asset Committee on May 13, with its first meeting held at the National Assembly Members’ Hall in Seoul. The committee joins other national efforts, including the Virtual Asset Committee formed in late 2024 and a crypto-focused task force established in 2022 by the Financial Services Commission (FSC).
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