South Korea Proposes Won-Based Stablecoin to Combat Foreign Capital Outflows

Ahead of the 2025 South Korean presidential election, leader Lee Jae-myung has proposed the creation of a won-based stablecoin. This initiative aims to bolster domestic financial sovereignty and address growing reliance on foreign stablecoins. While Lee’s proposal could potentially position South Korea as a leader in government-backed digital currency, regulatory hurdles remain. The potential introduction of a government-backed stablecoin marks a significant shift in the nation’s approach to managing digital assets. It raises questions regarding monetary control and financial stability as well as challenges to international capital flows.