[2025 Audit] Lee Eogwon: "Stablecoin Regulatory Framework to Be Announced This Year... With Sufficient Safeguards"

Lee Eogwon, Chairman of the Financial Services Commission, announced plans to finalize and unveil the stablecoin regulatory framework within this year. He also stated that discussions are underway with experts on ways to enhance the global competitiveness of the Korean won-based stablecoin.

Lee Eogwon, Chairman of the Financial Services Commission, is taking an oath at the National Assembly's Political Affairs Committee hearing on the Financial Services Commission held in Yeouido, Seoul on the 20th. Photo by Yonhap News

Chairman Lee attended the National Assembly's Political Affairs Committee audit on the Financial Services Commission on the morning of the 20th. In response to a question from Yoo Dongsoo, a lawmaker from the Democratic Party of Korea, who asked whether risk factors related to stablecoins are being reflected in the second-phase digital asset legislation currently being prepared by the Financial Services Commission, Lee replied, "Since we are in the early stages of designing the system, we believe it is important to include sufficient safeguards, and we are reviewing this in cooperation with relevant ministries."

He added, "We are in the final stages of discussions with relevant ministries," and, when asked if the announcement would be made within this year, confirmed, "Yes." Currently, the risks associated with stablecoins include: ▲ reduced arbitrage opportunities ▲ diminished effectiveness of monetary policy ▲ undermining trust in payment and settlement systems ▲ threats to financial stability ▲ the potential for evading foreign exchange regulations and being used for illegal transactions.

In addition, Chairman Lee responded to a question about whether the Korean won-based stablecoin can secure competitiveness in the global market, given that dollar-based stablecoins account for 80% of the total market, while also overcoming these risks. He stated, "There are areas where overseas demand can be linked, not only for virtual asset trading but also for payments and remittances, so we are communicating closely with experts." He added, "We are working to ensure that not only the introduction of the system but also its practical applications are finalized." He further emphasized, "We will proceed swiftly by implementing follow-up measures such as enforcement decrees while adhering to the law."