Won-Based Stablecoin Proposal by South Korea’s Democratic Leader Targets Capital Outflows

Lee Jae-myung, leader of South Korea’s Democratic Party, has recommended creating a stablecoin tied to the Korean won to tackle capital outflows and reinforce national financial sovereignty. During a policy session, Lee argued that a won-based stablecoin could retain wealth domestically and reduce reliance on foreign digital assets such as USDt and USDC.

South Korean law currently prohibits domestic stablecoin issuance, causing exchanges to lean on US dollar equivalents.

Between January and March, crypto exchanges faced 56.8 trillion won in outflows, nearly half linked to foreign stablecoins. Lee remarked, “A won-backed stablecoin market is needed to keep national wealth from leaking overseas.”

This proposal fits into Lee’s wider digital asset policy, which includes legalizing spot cryptocurrency ETFs. Lee and his opponent, Kim Moon-soo of the People Power Party, are committed to supporting spot crypto ETFs.