Report: KRW Stablecoin Could Save Korean Merchants Up to 5.15 Trillion Won Annually
A report from the South Korean National Assembly Budget Office says a won-pegged stablecoin might cut payment processing fees for Korean merchants by 370 billion won to 5.15 trillion won each year. That works out to about $275 million to $3.8 billion.
Risks and Regulatory Recommendations
But the report is not all upside. It says broad stablecoin adoption could weaken banks' job as credit intermediaries and, during large-scale redemptions, could shake the token's peg. To reduce that risk, the report calls for reserve requirements, limits on stablecoin rewards, and tighter oversight of tokens that could threaten financial stability.
Regulatory Disagreement on Issuance
There is also a split between the Bank of Korea and the Financial Services Commission on who should issue stablecoins. The central bank wants issuers that are majority-owned by banks, with at least 51% ownership. The FSC says piling on restrictions could choke innovation.
Future Plans and Related Research
South Korea also plans to widen the scope of tokenized securities by February 2027. After that, later phases would link blockchain-based securities markets with stablecoin payment infrastructure. And in separate research published earlier this month, the Bank of Korea said directly trading dollar stablecoins on Binance with local currency could put downward pressure on the won's exchange rate.