It seems like South Korea is at something of a crossroads with its digital currency plans. A prominent voice is pushing for things to move faster, and maybe with a bit more ambition. Lee Kwang-jae, a former National Assembly Secretary-General who now teaches at Myongji University, is urging the government to get its won-pegged stablecoins onto major global exchanges. Without that, he thinks, they might not really go anywhere.
Global Access is the Real Challenge
Lee’s main argument is pretty straightforward. These new KRW stablecoins, which are supposedly launching soon, need to be available to international investors on platforms like Binance and Coinbase. If they’re not, he warns they’ll probably just languish, failing to gain any real global recognition. It’s a fair point. A currency, even a digital one, needs people to use it.
But here’s the big problem: South Korea has one of the most restrictive crypto environments out there. Right now, if you’re not a Korean citizen with a local social security number and a real-name verified bank account, you’re pretty much locked out of trading on domestic exchanges like Upbit. That effectively walls off the won from the outside world. Lee has criticized these rules, suggesting that demand can’t grow if outsiders can’t even participate.
Political Hurdles and Dollarization Fears
The government isn’t exactly sitting still. The Financial Services Commission is working on a dedicated bill to regulate these stablecoins, covering everything from reserve requirements to how they’re run. They call it a crucial step. But, and it’s a big but, political fighting has completely stalled progress in parliament.
Some lawmakers want a comprehensive digital asset law, while others are focused on a narrower bill just for stablecoins. This isn’t the first time efforts have been delayed, either. Past tries were derailed by worries over investor safety and the fallout from the 2022 market crash.
The pressure is still on, though. Regulators are getting nervous seeing the dominance of dollar-backed stablecoins like USDT in their own markets. There’s a genuine concern about “dollarization”—that if everyone starts using dollar-pegged tokens, the country could lose a chunk of its monetary sovereignty.
A Broader Vision for the Korean Won
Lee’s ideas go way beyond just finance. He imagines these KRW stablecoins being woven into the fabric of Korea’s cultural exports. Think paying for webtoons, K-dramas, or online education with won-pegged coins. He even mentioned using them for international healthcare services and cultural programs.
He also pointed to big tech players, suggesting that Samsung could eventually issue its own stablecoin, much like Apple is rumored to be considering. A Samsung-issued coin, integrated into Samsung Pay and backed by the won, could see massive use within its own ecosystem. Other Korean companies might follow suit, using the stablecoin as part of their global strategy. It’s an interesting thought—merging the country’s tech and cultural strength with its currency could actually boost its influence abroad. Whether it happens, of course, is another matter entirely.
