Stablecoins in South Korea: breakthrough or risk?
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In South Korea, the discussion about the legalization of stablecoins pegged to the won is gaining momentum. The ruling party is already preparing bills to create a legal framework for such assets, and the appointment of the former head of the blockchain analytics center Hashed to a key political position has only accelerated this process.
Proponents of implementation emphasize: the country cannot afford to lag behind Singapore and Hong Kong, where regulatory frameworks for digital currencies are already being formed. At the same time, foreign stablecoins are already being used in Korea, which threatens the stability of the national currency in the absence of control.
The Bank of Korea, however, warns of risks — from capital outflows and system failures to weakening influence on monetary policy. Nevertheless, initiatives are multiplying: Dunamu and Naver Financial are developing their own stablecoin, KakaoPay and KakaoBank are registering brands, and eight largest banks have united to launch a token pegged to the won.
According to UBS forecasts, stablecoins will be the first to penetrate the payment sphere due to low fees and instant transfers. By 2030, their turnover could range from 8 to 128 trillion won — depending on the regulatory environment and incentives for users. The income of issuers from reserves is estimated at 1–2 trillion won.
History shows: government support accelerates the adoption of technologies. Earlier, tax incentives helped cards become mainstream — similar measures could work for stablecoins as well. Fintech giants like KakaoPay and NaverPay, which have developed payment ecosystems, have every chance to outpace banks if the regulator allows them to issue tokens.
Ultimately, the success of stablecoins in Korea depends on how authorities balance innovation and financial risk. Expectations are high, but the final outcome is still unclear.
Proponents of implementation emphasize: the country cannot afford to lag behind Singapore and Hong Kong, where regulatory frameworks for digital currencies are already being formed. At the same time, foreign stablecoins are already being used in Korea, which threatens the stability of the national currency in the absence of control.
The Bank of Korea, however, warns of risks — from capital outflows and system failures to weakening influence on monetary policy. Nevertheless, initiatives are multiplying: Dunamu and Naver Financial are developing their own stablecoin, KakaoPay and KakaoBank are registering brands, and eight largest banks have united to launch a token pegged to the won.
According to UBS forecasts, stablecoins will be the first to penetrate the payment sphere due to low fees and instant transfers. By 2030, their turnover could range from 8 to 128 trillion won — depending on the regulatory environment and incentives for users. The income of issuers from reserves is estimated at 1–2 trillion won.
History shows: government support accelerates the adoption of technologies. Earlier, tax incentives helped cards become mainstream — similar measures could work for stablecoins as well. Fintech giants like KakaoPay and NaverPay, which have developed payment ecosystems, have every chance to outpace banks if the regulator allows them to issue tokens.
Ultimately, the success of stablecoins in Korea depends on how authorities balance innovation and financial risk. Expectations are high, but the final outcome is still unclear.