12-5-2025 – South Korea’s presidential candidates have locked horns over the contentious issue of stablecoin regulation, thrusting cryptocurrency into the political spotlight. Lee Jae-myung, the standard-bearer of the opposition Democratic Party, ignited the debate on 8 May by championing the urgent creation of a Korean won-backed stablecoin market. He warned that failure to act swiftly risks a haemorrhaging of national wealth to foreign markets, a stance that underscores his ambition to harness digital assets for economic gain.
This bold proposal met fierce resistance from Lee Jun-seok, the Reform Party’s candidate, who evoked the catastrophic implosion of Terra’s algorithmic stablecoin, KRT, in 2022. He cautioned that stablecoins untethered to tangible assets like cash or government bonds invite financial ruin, urging a more restrained approach to crypto innovation. In a spirited rebuttal, Kim Byung-wook, a former lawmaker and staunch ally of Lee Jae-myung, argued that global regulators have drawn a clear line between risky algorithmic models and compliant stablecoins, which are fully backed by liquid reserves. He emphasised the potential of a Korean won stablecoin to slash the steep costs of cross-border remittances, offering a lifeline to businesses and individuals alike.
Industry observers have hailed this exchange as a watershed moment, marking the first time South Korean political heavyweights have publicly grappled with the technical nuances of digital currencies. With the general election looming on 3 June, the outcome of this heated contest could steer the nation’s cryptocurrency policies for years to come,
