South Korea’s newly elected President, Lee Jae-myung, on June 3, moved swiftly to fulfil his campaign promise by introducing legislation that allows local firms to issue stablecoins.
He aims to strengthen one of the world’s busiest digital asset markets and keep national wealth within the country, Bloomberg reported.
Stablecoin Legislation Details
Under the new bill, South Korean companies can issue stablecoins if they have at least 500 million won (about $368,000) in equity capital.
They must hold matching reserves to guarantee refunds and obtain approval from the Financial Services Commission, the nation’s finance regulator. These rules are designed to ensure that stablecoins remain fully backed and safe for consumers.
Crypto Market Impact
Stablecoin trading in South Korea has already surged. In the first quarter of this year, transactions of leading U.S. dollar stablecoins topped 57 trillion won (approximately $42 billion) across five major domestic exchanges.
Data from the Bank of Korea shows that more than a third of South Koreans, or roughly 18 million people, now participate in cryptocurrency trading. With official approval, these numbers could grow further and cement South Korea’s place as a key regional crypto hub.
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President’s Broader Crypto Agenda
Lee has made no secret of his broader support for digital assets. During his campaign, he urged South Korea’s national pension fund to invest in Bitcoin and other cryptocurrencies. He also pledged to clear the path for Bitcoin exchange-traded funds (ETFs) in the country.
In May, he said, “We need to establish a won-backed stablecoin market to prevent national wealth from leaking overseas.” His remarks reflect a desire to keep financial assets tied to the local economy.
Economic Reform Push
A day after his inauguration, President Lee met with cabinet members to tackle slow economic growth and rising household strain. They discussed urgent reforms aimed at easing the burden on low-income families and supporting small businesses.
Lee vowed to take swift steps to spur growth and alleviate the daily financial burden on citizens. These measures run alongside his stablecoin plan, showing that he sees digital finance as part of a wider economic strategy.
Lee Jae-myung’s early moves illustrate a clear focus on modernising South Korea’s financial landscape. By setting rules for stablecoin issuance, he hopes to spur innovation without sacrificing safety.
At the same time, his broader reforms seek to uplift ordinary families and small firms. As these policies roll out, observers will watch closely to see if the new rules strengthen the economy and keep digital wealth within South Korea’s borders.
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