South Korea is preparing to legalize the issuance of Korean won-pegged stablecoins, marking a major shift in digital asset policy under the newly elected administration of President Lee Jae Myung.
The move comes as global interest in stablecoin regulation accelerates, particularly in the U.S.
Previously banned, the creation of domestic stablecoins is now a top economic priority for the Lee administration. The government aims to establish a licensed framework for issuers and reduce South Korea’s reliance on dollar-backed digital currencies.
Stablecoin Bill Introduced to Promote Local Issuance
Min Byeong-deok, a left-wing lawmaker and head of digital asset policy during Lee’s campaign, has introduced legislation that would create a licensing system and regulatory standards for companies looking to issue Korean won-based stablecoins.
“The use of dollar stablecoins is directly linked to capital outflows,” Min told The Block, emphasizing that stablecoin settlements in KRW could help retain domestic capital and reduce currency conversion risks.
The proposal seeks to enable private entities to issue won-pegged stablecoins across key industries, including gaming, content creation, and e-commerce.
Policy Aims to Cut Costs, Diversify FX Risk, and Attract Investment
The administration views this initiative as a strategic tool to bolster South Korea’s economic autonomy in the digital age. Min noted that local stablecoins could “reduce trade costs, diversify foreign exchange risks, and increase global investment into the local economy.”
If enacted, the law would position South Korea as a global leader in sovereign-backed stablecoin innovation, while also strengthening its monetary independence in a world increasingly driven by blockchain-based finance.
Kosta Gushterov
Reporter at Coindoo
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Source: https://coindoo.com/south-korea-moves-to-legalize-won-based-stablecoins-under-new-leadership/