TechFlow news, May 20 — According to Cointelegraph, Lee Jae-myung, leader of South Korea's Democratic Party, has proposed creating a stablecoin pegged to the Korean won to prevent capital outflows and strengthen national financial sovereignty.
Data shows that during the first quarter of this year, South Korean cryptocurrency exchanges experienced asset outflows totaling 56.8 trillion won (approximately $40.8 billion), nearly half of which was linked to foreign stablecoins. Current South Korean regulations prohibit the issuance of domestic stablecoins, forcing local exchanges to rely solely on dollar-backed stablecoins.
Lee emphasized the need to establish a won-backed stablecoin market to prevent national wealth from flowing overseas. He also proposed allowing the National Pension Service and other institutions to invest in cryptocurrencies, and plans to create a comprehensive monitoring system that would reduce transaction fees under government oversight, making cryptocurrencies more accessible.
