Won stablecoins could save South Korean merchants $3.8 billion annually, budget office says

A study by South Korea's National Assembly Budget Office projects that won-denominated stablecoins could save merchants $275 million to $3.8 billion annually by lowering transaction fees to 0.1%–0.3%. However, adoption faces regulatory hurdles. The Bank of Korea favors bank-controlled issuers with at least 51% ownership, while the Financial Services Commission pushes for broader innovation. The budget office also warned of financial stability risks, including bank deposit outflows and peg instability.

Won stablecoin merchant payment savings

• ▪As of July 2026, dollar-linked stablecoins comprised 98.8% of the total global stablecoin market of approximately $312.3 billion, which won-denominated stablecoins would seek to challenge as a domestic alternative.
• ▪A study published on September 8, 2026, by South Korea's National Assembly Budget Office projected that won-denominated stablecoins could reduce merchant payment fees by 370 billion won to 5.15 trillion won annually.
• ▪Traditional credit card transaction fees in South Korea range from 1.3% to 1.5% per swipe, whereas stablecoin-based payments could reduce fees to between 0.1% and 0.3%.

Bank of Korea regulatory position

• ▪A Bank of Korea study published in September 2026 found that direct trading between local currencies and dollar stablecoins on Binance can push local currencies lower.
• ▪The Bank of Korea advocates for stablecoin issuers to be bank-controlled, proposing a minimum 50%-plus-one ownership structure by traditional financial institutions.

Financial Services Commission regulatory position

• ▪The Financial Services Commission of South Korea opposes strict bank-ownership requirements for stablecoin issuers, arguing that such restrictions could hinder innovation.
• ▪The Financial Services Commission of South Korea plans to expand tokenized securities in February 2027, with a later stage linking blockchain-based securities markets to stablecoin payment infrastructure.

Stablecoin financial stability risks

• ▪The National Assembly Budget Office of South Korea warned that stablecoin adoption could cause bank deposit outflows, reducing banks' roles as credit intermediaries.
• ▪The National Assembly Budget Office of South Korea noted that connections between dollar stablecoins traded in South Korea and other financial markets remain limited but could strengthen during geopolitical stress.
• ▪The National Assembly Budget Office of South Korea warned that a wave of mass redemptions could force stablecoin issuers to dump reserve assets, potentially breaking the token's peg.

South Korea stablecoin policy development

• ▪South Korea's first major crypto investor protection law took effect in July 2024, covering customer assets and unfair trading.
• ▪The National Assembly Budget Office of South Korea called for regulatory measures including reserve requirements, limits on stablecoin rewards, and stronger oversight of tokens.
• ▪The proposed Digital Asset Basic Act, which would establish a comprehensive framework for stablecoins in South Korea, remains under legislative review.

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