Lee Jae-myung, a presidential candidate in South Korea’s upcoming election on June 3, 2025, has promised to launch a stablecoin backed by the South Korean won. This initiative aims to reduce the country’s dependency on US dollar-based stablecoins. His proposal has sparked debate with claims that it could prevent the loss of billions of dollars to overseas markets. Additionally, Lee plans to legalize spot cryptocurrency ETFs, facilitating easier trading of digital currencies through exchanges.
Details of the Won-Backed Stablecoin Initiative
Lee’s announced stablecoin plan aims to enable transactions at a speed suitable for every digital wallet, from rural to metropolitan areas. This altcoin , pegged 1:1 to the South Korean won, promises to boost local trade and curb foreign currency outflow.
In the past three months, $41 billion has exited local exchanges, predominantly through dollar-based stablecoins, reflecting significant capital leakage from the economy. The introduction of a won-backed stablecoin has garnered attention not just from individuals but also from institutional investors.
Experts describe the state-backed stablecoin idea as an “innovative step” but caution about control over money supply and regulatory issues. Inadequate supervision could adversely affect the banking system. Nevertheless, voters, especially the younger demographic, welcome the proposal as it offers the appeal of investing in cryptocurrencies on a domestic platform. Lee’s team is quickly working towards deploying a pilot program for the stablecoin in collaboration with the central bank.
Lee’s Plans for Cryptocurrency ETFs and Regulation
Alongside the stablecoin initiative, Lee aims to streamline investment processes by bringing spot cryptocurrency ETFs to official stock exchanges. This move would allow people to buy and sell Bitcoin (BTC) $106,958 and other cryptocurrencies as easily as stocks, eliminating the complexity of wallets and private keys. Major institutions like the National Pension Fund could also support this market entry, thereby increasing liquidity.
A draft of the “Digital Asset Basic Law” is in the works to serve as the foundation for this framework. This law will include clear rules on stablecoins, issuance principles, trading standards, and oversight mechanisms. If passed by the National Assembly, it could position South Korea as a regional leader in regulation. The young and tech-savvy voter base views this new legislation as a financial opportunity.
