Proposal for Won-Based Stablecoin by South Korea’s Democratic Leader Aims to Curb Capital Outflows
Lee Jae-myung, the Democratic Party leader in South Korea, has proposed developing a stablecoin tied to the Korean won to prevent capital outflows and strengthen national financial sovereignty.
During a policy discussion, Lee highlighted that a won-based stablecoin would help maintain wealth within the country, reducing reliance on foreign-issued digital assets like USDt and USDC.
Presently, South Korean laws prohibit the issuance of domestic stablecoins, compelling local exchanges to use US dollar-backed options.
Between January and March, the country’s crypto exchanges recorded 56.8 trillion won in outflows, with nearly half connected to foreign stablecoins. Lee stated, “We must create a won-backed stablecoin market to stop national wealth from leaving the country.”
This initiative is part of Lee’s comprehensive digital asset vision, which includes allowing spot cryptocurrency ETFs. Both he and Kim Moon-soo from the People Power Party have expressed support for spot crypto ETFs.
