- BoK Governor Rhee Chang-yong will meet bank CEOs on June 23 to discuss won-based stablecoin regulation.
- President Lee Jae-myung supports stablecoin legalization to curb capital flight and boost digital asset growth.
- The central bank remains cautious, warning that foreign stablecoins threaten Korea’s monetary policy and financial stability.
South Korea’s digital asset landscape is poised for a potential regulatory shift as Bank of Korea Governor Rhee Chang-yong is scheduled to meet with CEOs of major commercial banks on June 23 in Seoul. The high-level meeting, set to take place at the Bank of Korea (BoK) headquarters, comes at a time of rising political and economic interest in Korean won-backed stablecoins.
A major item on the agenda will be the issuance and regulation of stablecoins, particularly those denominated in Korean won, as President Lee Jae-myung’s administration looks to reshape digital asset policy in South Korea. President Lee, elected in a snap election on June 3, is a known supporter of the cryptocurrency sector and has prioritized financial innovation to curb capital outflows and enhance monetary sovereignty.
Political Momentum for Stablecoin Regulation
Recent developments have added urgency to the conversation. Just last week, Democratic Party lawmaker Min Byung-deok introduced the Digital Asset Basic Act, which outlines a licensing regime for stablecoin issuers, reduced capital requirements for fintech firms, and formal legal backing for won-based stablecoins.
This aligns with President Lee’s crypto-forward agenda, which includes legalizing spot Bitcoin ETFs and introducing regulated stablecoin products. The move comes amid significant capital outflows, with South Korean crypto exchanges transferring $40.6 billion worth of digital assets abroad in Q1 2025, nearly half of which was in stablecoins like USDT and USDC.
The administration believes that creating a domestic stablecoin ecosystem could help retain capital and reduce reliance on foreign-denominated tokens, a concern increasingly voiced by central bank officials.
Central Bank’s Cautious Approach
While political support is growing, the Bank of Korea remains cautious about embracing stablecoins too quickly. Deputy Governor Lee Jong-ryeol recently flagged non-bank stablecoin issuers as a risk to financial stability, particularly during economic downturns. He also emphasized that the proliferation of foreign stablecoins poses a major threat to monetary policy control.
In response, the BoK is considering the development of blockchain-linked deposit tokens a digital representation of fiat deposits backed by commercial banks as a regulated alternative to open-market stablecoins.
Despite the central bank’s concerns, the evolving market conditions and mounting political momentum suggest that a new framework around digital assets, particularly stablecoins pegged to the won, is becoming inevitable.
The outcome of the June 23 meeting could shape the next phase of South Korea’s digital financial policy, as the country seeks to balance financial innovation with economic oversight.
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