South Korea’s Democratic Party Leader Advocates for Won-Based Stablecoin to Curb Capital Outflows

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Lee Jae-myung, leader of South Korea’s Democratic Party, has suggested creating a stablecoin linked to the Korean won to prevent capital outflows and enhance financial sovereignty. In a recent policy discussion, Lee argued that a won-backed stablecoin could help retain wealth domestically and reduce dependency on foreign digital assets like USDt and USDC.

Currently, South Korean regulations prohibit domestic stablecoin issuance, forcing local exchanges to use US dollar-backed alternatives.

From January to March, crypto exchanges experienced 56.8 trillion won in asset outflows, with nearly half linked to foreign stablecoins. Lee emphasized, “We need to establish a won-backed stablecoin market to keep national wealth from going overseas.”

This proposal is part of Lee’s broader digital asset strategy, which includes legalizing spot crypto ETFs. Both Lee and Kim Moon-soo of the People Power Party support introducing spot crypto ETFs.

Lee also advocates for allowing the National Pension Fund and institutional investors to engage in crypto investments under certain conditions. His plan includes an integrated monitoring system and reduced transaction fees to increase crypto accessibility under government regulation.