The head of the Bank of Korea, Lee Chang-yong, expressed concern that the issuance of stablecoins pegged to the won may not reduce, but rather increase the demand for dollar stablecoins due to easier exchanges between them. This will complicate the regulator's task of overseeing the currency market and could negatively impact bank profits when transferring settlements to non-financial entities.
At the same time, President Lee Jae-myung advocates for the development of KRW stablecoins as a tool to curb capital outflow. The Bank of Korea does not oppose the emergence of such instruments, provided that there is strict risk management and coordination with the Ministry of Economy and the Financial Services Commission.
