Key Notes
- South Korean presidential candidate favours won-backed stablecoin.
- The stablecoin is expected to reduce capital flight in the country.
- Lee Jae-myung also plans to establish a system that enables greater institutional participation in cryptocurrency.
South Korea’s presidential candidate from the Democratic Party, Lee Jae-myung, has announced plans to support the development of a stablecoin pegged to the Korean won. This proposed won-backed stablecoin aims to curb capital flight and strengthen the country’s financial sovereignty.
Jae-myung emphasized that introducing such a stablecoin would allow the Korean economy to retain more wealth domestically, eliminating the need to convert won into U.S. dollar-backed stablecoins like USDT and USDC.
According to reports, South Korean crypto exchanges have witnessed an outflow of $40.8 billion (56.8 trillion won) in the first quarter of this year, and about a half of these asset outflows have been linked to dollar-based stablecoins. This comes after the current South Korean financial terrain banned crypto firms from issuing stablecoins that are tied to the won.
Jae-myung expressed his support during a recent policy meeting, stating, “We need to establish a won-backed stablecoin market to prevent national wealth from flowing overseas.”
Dpk candidate’s thoughts on crypto assets
The Democratic Party of Korea (DPK) candidate has taken a clear pro-crypto stance, revealing plans to legalize spot crypto ETFs, a move that would allow digital assets, particularly Bitcoin BTC $96 611 24h volatility: 2.1% Market cap: $1.92 T Vol. 24h: $29.09 B , to be traded on domestic stock exchanges.
As part of this broader crypto initiative, the candidate has also pledged to implement a regulatory monitoring system that would provide investors with secure and transparent access to cryptocurrencies. This framework would enable institutions such as the National Pension Fund to engage with digital assets in a regulated environment.
This marks a significant departure from the traditionally cautious approach of South Korean regulators. Recently, the country lifted its ban on corporate participation in crypto asset trading, representing a major shift from 2017, when cryptocurrency activity was largely prohibited.
Lee Jae-myung is not the only presidential candidate voicing support for digital assets. Kim Moon-soo, representing the People Power Party, has also expressed his intention to promote cryptocurrency adoption and related activities in South Korea if elected.
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