Korean Won Stablecoin Gains Competitiveness Through K-Culture…Possibility of Leaping to the Digital G2

There are claims that linking the Korean Won stablecoin with the global popularity of K-culture could help South Korea leap forward as a digital G2 nation.

Min Byung-deok, a member of the Democratic Party of Korea, said this at a discussion titled “Won Stablecoin, Opening the Future of Financial Innovation” held at the Korea Financial Investment Association in Yeongdeungpo-gu, Seoul on the 8th, “If we utilize the global influence of K-culture, we will not give up when other countries give up on issuing their own currency stablecoins.” Representative Min emphasized, “Of the 50 million users of the Hive app, 70% are foreigners, and 20% of the world’s population uses Galaxy smartphones,” and “If we issue a won stablecoin before China starts in earnest (with the yuan stablecoin), Korea can become a digital G2 country.”



Cryptocurrency and fintech industry insiders who attended the discussion also presented specific plans for a KRW stablecoin business and urged swift legislation. Seo Byeong-yoon, a director at DSRV, stated, “Using KRW stablecoins for trade settlements can simplify complex contracts by putting them into smart contracts, saving tens of trillions of won in costs.” He added, “The 250 million K-pop fans around the world should be able to use KRW stablecoins, and foreign workers in Korea should be able to send money using KRW stablecoins instead of Tether (USDT).”

Myung Jae-hyun, Managing Director of KG Inicis, pointed out, "For domestic idol concerts, more than half of payments made on Interpark, a Korean-language platform, are already made by foreigners, and the current financial system is vulnerable to payment cancellations and fraudulent use." He added, "If a foreigner claims in their home country that they 'did not attend' after attending a concert, the foreign card company may cancel the payment, causing damage to domestic businesses. Introducing a won-denominated stablecoin could protect domestic businesses and improve payment convenience."

Cryptocurrency exchanges emphasized their role as key players in supporting the circulation of KRW stablecoins and advocated for deregulation. Kim Tae-yoon, Managing Director of Bithumb, stated, "If there are no easy points of entry for purchasing stablecoins, cross-border transactions will be difficult. For foreigners to easily purchase stablecoins issued domestically, they must be able to trade them on domestic exchanges." He added, "It is crucial to allow foreigners to trade domestically and, conversely, to actively promote the overseas expansion of domestic exchanges to ensure the two-way circulation of KRW stablecoins." Lee Ji-hyung, Director of Dunamu, also argued, "Regulations should be established to distinguish between general stablecoins and those used for payment purposes, ensuring that domestic exchanges can support transactions of non-payment stablecoins without any issues."

While the authorities agreed with the need for a won-denominated stablecoin, they also expressed a cautious stance, citing monetary and foreign exchange policy risks. Kim Seong-jin, Director of the Virtual Assets Division at the Financial Services Commission, stated, "We plan to support the National Assembly's legislative efforts soon for the Phase 2 Act on Virtual Assets, including stablecoins." He added, "We are prioritizing a balance between global consistency and innovation and stability, and we will strive to expedite working-level consultations with the Ministry of Strategy and Finance and the Bank of Korea."

Reporter Kim Jeong-woo