Bank of Korea Governor to Meet Bank Chiefs as Stablecoin Debate Heats Up

Bank of Korea Governor Rhee Chang-yong is set to meet with the heads of the country’s major commercial banks this month, with the meeting expected to address growing political pressure to allow issuance of won-based stablecoins.

The gathering, scheduled to take place at the Bank of Korea headquarters in Seoul on June 23, comes amid heightened debate over how South Korea should regulate digital assets.

Stablecoins are likely to dominate the agenda following a renewed push in the political arena. 

Last week, Democratic Party lawmaker Min Byung-deok proposed the “Basic Digital Asset Act,” which includes provisions to allow stablecoins pegged to the Korean won and reduce capital requirements for issuers, opening the door to fintech firms.

The political shift comes after South Korea elected Lee Jae-myung as president in a snap election on June 3, triggered by the impeachment of his predecessor. 

Lee, a long-time crypto advocate, has pledged to legalize spot Bitcoin ETFs and introduce a regulated stablecoin market to prevent capital outflows.

South Korean crypto exchanges transferred $40.6 billion worth of digital assets abroad in Q1 2025, with approximately half of that amount in stablecoins such as USDT and USDC, prompting concerns over capital flight and monetary sovereignty.

While Lee’s administration favors the use of stablecoins, the central bank has expressed caution, particularly regarding non-bank issuers, as interest in central bank digital currencies has waned.

The Bank of Korea argues that such models could undermine monetary policy and spark financial instability during crises.

Deputy Governor Lee Jong-ryeol recently confirmed the bank is exploring blockchain-linked deposit tokens as a more limited alternative.

He also voiced alarm over the proliferation of foreign stablecoins, calling them “the most concerning part” of Korea’s digital asset landscape.

Edited by Sebastian Sinclair