South Korea's Economic Turmoil! The Battle for Stablecoins, Lee Jae-myung Loses His Temper, Can South Korea Break Through Dollar Financial Hegemony?

At a crucial moment in the election campaign, Lee Jae-myung shouted, "If we don't develop a Korean won stablecoin, all of South Korea's money will be taken away by the U.S. and Japan!" His opponent, Lee Jun-seok, fiercely countered with a 30-page report, claiming that “the Terra-Luna crash caused 200,000 South Koreans to go bankrupt.” This debate over stablecoins instantly became a global focus.

Former blockchain company CEO Kim Byeong-wook posted a video on Twitter exposing the high transfer fees of traditional banks and recommended that stablecoins could significantly reduce costs. As a result, economists and blockchain experts engaged in heated debates in the comments section, resulting in the most intense online argument in South Korea's history.

Despite the shadow of the Terra crash, the domestic stablecoin market in South Korea is quietly rising: Samsung Securities' won-pegged stablecoin is about to be tested, and Shinhan Bank's crypto settlement system is already in trial operation in Dubai.

However, South Korea's predicament is more complex. Although the trading volume of virtual assets ranks among the top globally, 90% of stablecoins are pegged to the U.S. dollar. Seoul National University professor Park Ji-hoon warned that South Korea's financial autonomy is being controlled by the Federal Reserve.

Opponents point out that USDC has been authorized by the U.S. to enter the Federal Reserve payment system, backed by U.S. Treasury bonds and cash reserves, while South Korea's crypto financial infrastructure is far behind.

South Korea is facing a historic choice: continue to be a vassal of the U.S. dollar financial system or boldly build its own financial sovereignty?