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Korean Crypto Stocks- New President Drives Crypto Policy Shift in South Korea
Korean Crypto Stocks– South Korea’s newly elected President Lee Jae-myung is moving quickly on his campaign promise to legalize and regulate won-backed stablecoins, following his victory in the June 3 snap election.
Digital Asset Bill Aims to Regulate Local Stablecoins
On Tuesday, Lee’s Democratic Party introduced the Digital Asset Basic Act, designed to improve transparency and competitiveness in the domestic crypto sector, according to Bloomberg.
Under the proposed law, South Korean companies would be permitted to issue stablecoins if they maintain at least 500 million won ($368,000) in equity capital, hold sufficient reserves for redemptions, and gain approval from the Financial Services Commission.
The bill comes amid a surge in stablecoin use: $42 billion in USD stablecoin transactions were recorded across South Korea’s top five exchanges in Q1 2025, Bank of Korea data shows.
Lee’s Crypto Agenda Faces Central Bank Resistance
President Lee also supports Bitcoin ETFs and suggests that the national pension fund should consider crypto investments. He emphasized the importance of a local stablecoin in May, saying:
We need to establish a won-backed stablecoin market to prevent national wealth from leaking overseas.
However, the Bank of Korea is pushing back. Governor Rhee Chang-yong warned that private-sector stablecoins could undermine the central bank’s control over monetary policy, insisting the bank should oversee any such initiative.
Crypto-Linked Stocks Surge — But Analysts Urge Caution
Following the legislative push, shares in crypto-related firms like KakaoPay soared, rising up to 45% in five days, according to Google Finance. But JPMorgan analysts caution that:
The rally in Kakao-related shares is fundamentally unjustifiable, as any concrete benefit from Lee’s stablecoin policy remains uncertain.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
