A bold Korean won stablecoin initiative has been proposed by Lee Jae-myung, the front-runner in South Korea’s upcoming presidential election. The Democratic Party leader suggests launching a national stablecoin backed by gold and pegged to the Korean won to prevent capital flight and strengthen financial sovereignty.
Speaking at a political forum, Lee emphasized that relying on foreign-backed stablecoins like USDT and USDC poses a risk to national economic independence.
“We must create a gold-backed stablecoin market to stop national wealth from leaking abroad,” Lee stated.
Korean Won Stablecoin Could Counter Capital Outflows
South Korea currently prohibits the issuance of domestic stablecoins, forcing local exchanges to depend on US dollar-pegged alternatives. A recent report revealed that between January and March, ₩56.8 trillion ($40.8 billion) worth of crypto assets exited the country — nearly half related to USD-backed stablecoins.
Lee argues that a Korean won stablecoin would help retain capital, empower local platforms, and reduce reliance on U.S.-based cryptocurrencies.
Lee’s Campaign Pushes for Crypto-Inclusive Reforms
As part of his broader campaign strategy, Lee also advocates for allowing the National Pension Fund and other institutional players to invest in cryptocurrencies. However, this would only be permitted if price stability criteria are met, ensuring responsible and long-term digital asset management.
Lee’s plan signals a major shift in South Korea’s regulatory stance, which has historically taken a conservative approach to crypto. His proposals could bring legal clarity and foster a stronger domestic crypto market.
Rival Also Supports Crypto Innovation
Lee’s opponent, Kim Moon-soo of the People Power Party, also supports crypto regulation and promises to back spot-based crypto investment funds if elected. This bipartisan interest shows that crypto policy is becoming a key issue in South Korea’s presidential race.
Both candidates recognize the growing role of blockchain finance and its potential impact on South Korea’s economy.
Conclusion: Korean Won Stablecoin Could Redefine National Crypto Policy
The Korean won stablecoin proposal highlights a growing consensus among political leaders: South Korea must modernize its financial infrastructure. Whether backed by gold or fiat, a national stablecoin could position the country at the forefront of regulated digital finance in Asia.
With rising capital outflows and increasing public crypto adoption, introducing a local stablecoin may no longer be a question of if, but when.
