In an effort to curb capital outflows and enhance financial sovereignty, South Korea’s Democratic Party leader, Lee Jae-myung, has proposed a stablecoin linked to the Korean won.
Speaking at a recent policy discussion, Lee emphasized how a domestically backed stablecoin could help retain wealth and lessen dependency on foreign digital currencies like USDt and USDC.
Currently, South Korean laws ban the creation of domestic stablecoins, forcing reliance on US dollar alternatives. Between January and March, crypto exchanges noted 56.8 trillion won in outflows, with half linked to foreign stablecoins.
This initiative is a key part of Lee’s larger digital asset strategy, which also seeks to legalize spot crypto ETFs. Lee and his rival, Kim Moon-soo of the People Power Party, advocate for the introduction of spot crypto ETFs.
He also suggests permitting the National Pension Fund and institutions to invest in crypto if price stability is maintained. His plan calls for an integrated monitoring system and reduced transaction fees to ensure crypto is accessible under government oversight.
