Seoul, September 8, 2025 — Lee Kwang-jae, former Secretary General of the National Assembly of South Korea and current distinguished professor at Myongji University, recently stated in an interview with the Seoul Economic Daily that South Korea should accelerate the listing of a stablecoin pegged to the Korean won on global cryptocurrency exchanges such as Binance and Coinbase, and allow overseas traders to trade freely on domestic exchanges like Upbit and Bithumb, in order to enhance the international recognition and market demand for the Korean won stablecoin. This proposal has sparked widespread attention and has become a hot topic in the recent South Korean cryptocurrency market.

Korean Won Stablecoin: A Key Step Towards Internationalization

Distinguished Professor Lee Kwang-jae of Myongji University. (Image: OBS Radio/Screenshot)

Lee Kwang-jae pointed out that the success of the Korean won stablecoin requires participation from the global market. He stated, “If we want to increase the demand for stablecoins denominated in Korean won, we must list them on global cryptocurrency exchanges like Binance and Coinbase so that non-Koreans can trade them.” He believes that opening the Korean market to overseas traders is key to creating global demand. Currently, South Korean law requires customers of cryptocurrency exchanges to hold bank accounts with real-name verification, and only residents with a Korean address and social security number can open such accounts. This restriction prevents overseas traders from directly participating in transactions on domestic exchanges.

Lee further suggested that South Korea should allow overseas traders to trade on major domestic exchanges like Upbit and Bithumb to break down existing barriers. He emphasized, “Only when foreigners can enter the Korean market can we truly create global demand and gain recognition for stablecoins denominated in Korean won on the international stage.”

Samsung May Lead the Wave of Korean Won Stablecoins

Lee Kwang-jae also predicted that South Korean tech giant Samsung is likely to play an important role in the stablecoin sector. He stated, “Samsung and Apple dominate the smartphone industry, and they will eventually compete in the stablecoin market as well. Given Samsung's strong position in the hardware market, integrating the Korean won stablecoin into its payment system will have a significant impact.” Some market observers believe that Samsung may launch a Korean won stablecoin on its Samsung Pay platform and apply it to the international market to enhance the competitiveness of South Korean companies globally.

Additionally, Lee proposed that the application scenarios for the Korean won stablecoin should expand to cross-border culture, education, and healthcare. For example, consumers of Korean webtoons and dramas, as well as users of online learning and telemedicine services, could use the Korean won stablecoin for payments. He stated, “Only by promoting the widespread use of the Korean won stablecoin at the national level can they truly realize their value enhancement.”

Regulatory Stalemate and Policy Controversy

Despite the new South Korean government actively promoting the legislative work for the Korean won stablecoin, the related process has progressed slowly due to political differences, even reaching a state of “stagnation.” Conservatives advocate allowing only major commercial banks to issue Korean won stablecoins, while progressives support large tech companies issuing their own stablecoins. Lee Kwang-jae criticized this view, arguing that the idea of banks monopolizing stablecoin issuance is “out of touch with the times.” He cited international examples, pointing out that mainstream global stablecoins like USDT (issued by Tether) and USDC (issued by Circle) are issued by private companies rather than banks, demonstrating the potential of tech companies in the stablecoin field.

Lee emphasized that South Korea needs to align with global trends and encourage private enterprises to participate in stablecoin issuance to promote innovation and market competitiveness. He warned that if the conservative stance continues, South Korea may fall behind in the global stablecoin market.

Current Status and Challenges of the South Korean Crypto Market

According to data from the Korea Financial Intelligence Unit (KoFIU), there were approximately 6 million cryptocurrency investors in South Korea in the first half of 2023, accounting for over 10% of the national population, indicating a strong interest in cryptocurrencies. However, the South Korean crypto market is highly dependent on centralized exchanges, with Upbit holding about 80% of the market share, while other exchanges like Bithumb, Coinone, and Korbit also play important roles in the market.

Recently, the South Korean crypto market has experienced some volatility. In December 2024, political turmoil in South Korea led to sharp fluctuations in cryptocurrency prices, with Upbit temporarily suspending trading due to a surge in traffic, as large amounts of capital flowed in to attempt to buy at the bottom. Additionally, the South Korean government plans to invest $2.2 billion in metaverse and blockchain technology by the end of 2025, demonstrating long-term support for the crypto industry.

However, strict regulatory policies remain a significant challenge for the South Korean crypto market. In 2021, South Korea implemented the Act on Reporting and Using Specific Financial Transaction Information, requiring exchanges to comply with anti-money laundering obligations and link to real-name bank accounts, resulting in over 60 small exchanges facing shutdowns for failing to meet standards. International exchanges like Binance and OKEx have also gradually exited the South Korean market due to regulatory pressure, with Binance halting support for Korean won trading pairs and Korean language support.

Lee Kwang-jae's proposal points to a new direction for the development of the South Korean cryptocurrency market. By promoting the listing of the Korean won stablecoin on global exchanges and opening the domestic market to overseas traders, South Korea is expected to occupy a more important position in the global cryptocurrency market. However, this requires close cooperation between the government, regulatory agencies, and private enterprises to address regulatory barriers and establish a clear policy framework.

Meanwhile, the future development of the South Korean crypto market still faces uncertainty. Balancing innovation with regulation and highlighting the advantages of the Korean won stablecoin in global competition will be significant challenges for the South Korean government and enterprises. As Lee Kwang-jae stated, “Only through openness and innovation can the Korean won stablecoin truly become part of the global market.”

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