Lawmakers affiliated with Lee Jae-myung, the leading candidate in the South Korean presidential race, are advocating for a swift establishment of a KRW stablecoin, aimed at outpacing initiatives from Washington.
According to a report from South Korean media outlet Edaily, Min Byoung-dug, a Democratic Party lawmaker and chair of the party’s Digital Asset Committee, emphasized that stablecoins have the potential to emerge as a significant industry alongside artificial intelligence and semiconductors. Min remarked:
“South Korea is an internet powerhouse. We must take the initiative in institutionalizing stablecoins before US dollar-based variants become firmly entrenched. This is our best chance to secure a prominent role in the global competition for stablecoin dominance.”
KRW Stablecoin Rollout: The Time Is Now
Min expressed optimism about the limitless potential for stablecoin adoption within the payments sector. He elaborated:
“We cannot simply stand by and allow it to develop into a formidable future industry at the scale of AI or semiconductors.”
An ally of Lee, Min has consistently pushed for reforms in cryptocurrency regulation, including calls for equal tax treatment for crypto investors and traditional stock traders.
Lee has consistently pledged to introduce a state-backed KRW stablecoin in light of the growing prevalence of USD-pegged coins such as USDT and USD Coin (USDC).
Leading the polls with nearly a 10% advantage over his closest rival, Kim Moon-soo from the People Power Party, Lee has urged the government to “swiftly enter the stablecoin market.”
이재명 46.6% 김문수 37.6% 이준석 10.4%…엇갈린 서울·PK 민심https://t.co/ULLVbHi5CQ
— JTBC 뉴스 (@JTBC_news) May 24, 2025
Recent polling shows Lee at 46.6%, Kim at 37.6%, and Reform Party leader Lee Jun-seok at 10.4%.
Lee has cautioned that postponing the launch of such a coin might result in increased capital flight from South Korea.
Min reiterated Lee’s sentiments, stating that it is essential for Seoul to “accelerate the institutionalization of stablecoins.”
He further explained that South Korea “cannot afford to lag behind as stablecoin usage skyrockets, particularly in the United States.”
USDT, USDC Dominance
Min pointed out that USDT and USDC command a staggering 90% share of the stablecoin market in the United States.
Moreover, he noted that USD-pegged coins “are already being utilized in certain areas of Korea, like Dongdaemun Market, which sees numerous foreign transactions.”
Source: Dune
Min’s references to Dongdaemun Market, a major hub for clothing and textiles in Seoul, have sparked debate.
Last year, discussions in South Korean crypto forums suggested a “mass adoption of USDT” was occurring at Dongdaemun, particularly among Chinese buyers.
Yet, vendors at Dongdaemun have indicated to both Finance Newso.com and local media that cash remains the prevalent currency in the market.
Nonetheless, Min reiterated that with the swift adoption of stablecoins domestically and internationally, Seoul risks becoming sidelined.
If USDT and USDC continue to rise in popularity, Min argued, the opportunity for a won-based stablecoin “will inevitably shrink.”
DPK's Lee Jae-myung urges 'junction of insurrection forces,’ pledging policies to enhance the stock market https://t.co/NdPe030YSR
— The Korea Times (@koreatimescokr) May 25, 2025
Could Lawmakers Act Before June 3 Elections?
Min asserted that a KRW stablecoin could capture global interest, potentially boosting international demand for won-denominated assets, such as government bonds that would support a stablecoin.
He suggested that enthusiasts of South Korean webtoons could be among the first international adopters, able to use a won-based stablecoin for their purchases.
Min indicated that he is actively advocating for the National Assembly to pass stablecoin legislation.
With a substantial majority in the upcoming elections, the Democratic Party could consider advancing such a proposal before the pivotal June 3 elections.
Min has already introduced a draft legislation, the Basic Act on Digital Assets, crafted with insights from industry experts.
He stated regarding the proposed law: “I intend to present the bill to the National Assembly following further review.”
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