South Korean stablecoin prices experience abnormal fluctuations, prompting industry calls to improve circulation safety mechanisms.

TechFlow reported on September 27 that fiat-pegged stablecoins have recently exhibited significant price deviations on Korean virtual asset exchanges. Following its listing, the Japanese yen-backed stablecoin JPYC reached up to four times its benchmark price, while the Euro-backed stablecoin EURC skyrocketed more than 400% in a single day on Bithumb. The US dollar-backed stablecoin PYUSD also demonstrated a noticeable premium. Analysts attribute these volatility swings to a combination of low initial circulating supply and concentrated buying pressure, which are unrelated to the reserve assets held by the issuers. Industry participants emphasize that reserves alone cannot prevent secondary market distortions. They are calling for the integration of initial supply guarantees, market maker (MM), and liquidity provider (LP) mechanisms into the design phase of the Korean won stablecoin framework, along with supporting measures such as mandatory price deviation rate disclosures and market order restrictions.