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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- May 20, 2025 11:13 UTC
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South Korea Eyes Won-Backed Stablecoin Ahead of 2025 Presidential Election
South Korean presidential candidate proposes a won-backed stablecoin to reduce U.S. dollar reliance and retain national wealth.
Lee Jae-myung also backs legal crypto ETFs and a Digital Asset Basic Act to modernize Korea’s financial and regulatory system.
Crypto just became a hot topic in South Korea’s upcoming election, or you can say a tool to win the presidential election held on 3 June 2025. Lee Jae-myung, the front-runner for president, wants to launch a Korean won-backed stablecoin.
And if it happens, it might flip the country’s financial system overnight and become the first to launch a government-backed digital currency that works?
Won-Based Stablecoin To Launch
Presidential candidate Lee has proposed a stablecoin backed by the Korean won, made just for the people of South Korea. And if it happens, it could completely turn into a full-blown national strategy, which will reduce the country’s reliance on foreign currencies like the U.S. dollar.
Right now, Korean crypto traders mostly use U.S.-based stablecoins like USDT and USDC. But this means billions of dollars are leaving the country.
In just three months this year, nearly $41 billion was withdrawn from Korean exchanges, much of it tied to dollar-backed coins. That’s money that could have stayed within Korea’s borders.
Lee says, “We need a won-based stablecoin to stop national wealth from leaking overseas.” It’s a bold idea, and one that could help protect Korea’s economy in the long run.
Crypto ETFs for the Masses
Lee’s crypto vision doesn’t stop there. He also wants to legalize spot crypto ETFs, so people can invest in Bitcoin and other coins through regular stock exchanges. This would make crypto investing easier, safer, and more accessible, especially for those who don’t want to deal with wallets and exchanges.
Even big institutions, like Korea’s National Pension Fund, might be allowed to invest once the market becomes more stable.
Experts Are Split
While many support the idea, some experts are warning about the risks. They believe stablecoins could act like “private banks,” creating money without enough control, and possibly shaking up the economy in dangerous ways.
Still, others say now is the time for Korea to act. With 15 million crypto investors across the country, many of them young and eager to grow their wealth, there’s pressure on politicians to make bold moves.
What’s Coming Next?
To support all this, the government plans to introduce the Digital Asset Basic Act—a bill that would finally give crypto a proper legal framework in Korea.
It will cover everything from stablecoin rules to how digital assets can be issued, traded, and regulated. If passed, it could open the door to a more open, fair, and modern financial system.
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FAQs
A won-backed stablecoin aims to keep wealth within Korea, as billions tied to dollar-backed stablecoins currently exit the country from crypto exchanges.
Some experts worry stablecoins could act like “private banks,” potentially inflating the money supply and shifting monetary control, disrupting the economy.
The Digital Asset Basic Act is a proposed bill to establish a comprehensive legal framework for crypto in Korea, covering stablecoin rules, issuance, trading, and regulation.
Yes 
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