Lee Chang-yong: "To Be Honest, I Am Afraid... Those With Incentive to Move Assets Overseas Will Use Stablecoins First" [2025 National Audit]

Lee Chang-yong, Governor of the Bank of Korea, expressed concerns that the introduction of a won-based stablecoin could accelerate the outflow of assets overseas.

Lee Changyong, Governor of the Bank of Korea. Photo by Yonhap News

During a comprehensive audit by the National Assembly’s Strategy and Finance Committee on October 29, Governor Lee stated, “Among the seven issues highlighted in the stablecoin white paper published by the Bank of Korea yesterday, the most significant concern is the already considerable outflow of funds from our country.” He pointed out, “Despite the current account surplus being at a record high, a large amount of money is still being taken abroad by Korean nationals.”

He emphasized, “While there are expectations that foreign buyers might purchase Korean goods using a won-based stablecoin, the opposite scenario is more likely.” His main concern is that Korean nationals could use the won-based stablecoin to accelerate the use of dollar-based stablecoins.

Governor Lee said, “To be honest, I am afraid. I am very concerned about the foreign exchange market,” adding, “From the perspective of foreign exchange management, this is why I suggest a phased approach, starting with banks at the center. If control proves effective, we can gradually expand.”

He also warned, “Those with an incentive to move their assets overseas would be the first to use a won-based stablecoin. Given the recent outflow of foreign currency, there is a substantial risk that this could be used to bypass foreign exchange regulations.” He reiterated, “I do not believe that providing a won-based stablecoin would replace the use of dollar-based stablecoins.”