South Korean Presidential Candidate Lee Jae-myung Proposes Won-Pegged Stablecoin

South Korea’s Presidential candidate Lee Jae-myung has proposed creating a Won-backed stablecoin to promote future economic growth.  At a recent policy talk with YouTubers focused on economic issues, he emphasized creating a won-backed stablecoin market to stop national wealth from leaving the country.

Lee Jae-myung Proposes a Won-backed Stablecoin

According to the presidential candidate, a domestically issued stablecoin represents a strategic tool for mitigating systemic risks. It also reduces reliance on external currencies and reinforces Korea’s economic sovereignty.

Currently, South Korea restricts the issuance of stablecoins pegged to the Korean won. As a result, the local market only facilitates trading in foreign-issued stablecoins such as USDT and USDC. 

Notably, from January to March, about 56.8 trillion won (roughly $40.8 billion) flowed out of Korean crypto exchanges, almost half of which was tied to dollar-based stablecoins.

As such, Shin Bo-sung, a senior researcher at the Korea Capital Market Institute, warned that allowing stablecoins could swell the money supply and trigger unforeseen consequences.

“It effectively hands the privilege of money creation to the private sector. We must not overlook the economic principles behind them. Stablecoins are essentially another form of banking, creating money out of nothing,” Bo-sung said.

Crypto Assets Compared to Stocks & Bonds

While Korean regulators remain cautious, Lee Jae-myung’s campaign emphasized that digital assets should be part of diversified portfolios. He also noted that they offer hedging benefits compared to traditional assets like stocks and bonds.

As part of the campaign, Jae-myung also proposed a framework under which institutional investors, including the National Pension Fund, would be authorized to invest directly in digital assets, provided certain value stability conditions are satisfied. The move could usher in large-scale institutional involvement.

If approved, crypto exchange-traded funds (ETFs) would enable retail investors to gain exposure to digital assets within a regulated framework, mitigating the complexities and risks associated with direct asset ownership.

Commenting on the latest development, Lee Keun-ju, president of the Korea Fintech Industry Association, said:

“A Bitcoin spot ETF is not simply a product. It can be the gateway to broadening the connection between the digital asset ecosystem and the capital market.”

He added that he welcomes the move to adopt spot crypto ETFs. Keun-ju emphasized that legal and infrastructure reforms will be critical to support the transition.