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Bank of Korea Governor will meet major commercial banks on June 23
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Stablecoin issuance is a key topic as President Lee Jae-myung pushes for reform
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Lawmakers propose reduced capital requirements to boost stablecoin innovation
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Central bank cautious about private-sector coins and exploring deposit-token alternatives
High-Level Meeting Set Amid Political Push for Stablecoins
Bank of Korea Governor Rhee Chang-yong will meet with the heads of South Korea's major banks on June 23, in a significant step toward shaping the country’s stablecoin policy. The meeting follows growing momentum for crypto reform after the recent election of President Lee Jae-myung.
New President Brings Aggressive Crypto Agenda
Lee, a long-time crypto advocate, took office following a snap election after the impeachment of his predecessor. Since taking power, he has promised to legalize spot Bitcoin ETFs and create a regulated market for stablecoins pegged to the Korean won. His administration is concerned about capital flight, particularly as over $40 billion in crypto was moved overseas in Q1 2025, with half of that volume in stablecoins like USDT and USDC.
Proposed Legislation Would Lower Barriers for Issuers
Lawmaker Min Byung-deok, a key ally of the president, introduced the “Digital Asset Basic Act,” which proposes allowing companies to issue won-backed stablecoins if they hold at least 500 million won ($366,749) in capital. This would lower the entry bar and enable fintechs to compete alongside traditional banks.
Central Bank Weighs Risks and Alternatives
While the administration is eager to promote stablecoin adoption, the Bank of Korea remains cautious. Officials worry that non-bank stablecoins could undermine financial stability during crises. Deputy Governor Lee Jong-ryeol said the central bank is studying blockchain-linked deposit tokens as a state-controlled alternative, aiming to preserve monetary policy effectiveness.
