South Korean Candidate Lee Jae-myung Proposes Development of Won-Backed Stablecoin

South Korea's Democratic Party candidate Lee Jae-myung announced plans for a stablecoin pegged to the Korean won. This initiative aims to reduce capital flight and enhance financial sovereignty.

The stablecoin would help retain domestic wealth by decreasing reliance on U.S. dollar-backed stablecoins like USDT and USDC.
In the first quarter of 2023, South Korean exchanges experienced $40.8 billion in outflows, with approximately half linked to dollar-based stablecoins.
Current regulations prevent crypto firms from issuing won-tied stablecoins.
Jae-myung called for a stablecoin market to stop national wealth from leaving the country.

Pro-Crypto Stance

Jae-myung supports legalizing spot crypto ETFs, allowing digital assets, particularly Bitcoin, on domestic exchanges.
He proposed a regulatory system for safe investor access to cryptocurrencies, enabling institutional involvement, including from the National Pension Fund.
This approach marks a shift from previous cautious regulations; South Korea recently lifted its ban on corporate crypto trading.
Another candidate, Kim Moon-soo from the People Power Party, also advocates for increased cryptocurrency adoption.