Bank of Korea Remains Wary of KRW Stablecoin Despite Circle’s Diplomatic Push

Circle Meets with Bank of Korea, But Stablecoin Approval Still Uncertain

Despite recent meetings between Circle executives and South Korean financial authorities, the Bank of Korea (BOK) remains skeptical about issuing a KRW pegged stablecoin.

According to South Korean outlet Newsway, Circle has met with both BOK officials and members of the National Assembly, reportedly to discuss stablecoin frameworks in light of South Korea’s changing political and economic landscape.

New Administration, Renewed Debate

Following the June 3 elections, South Korea’s new administration under President Lee Jae myung is exploring launching a KRW stablecoin for domestic and international trade use.

Lee’s ally, Democratic Party lawmaker Min Byung deok, has introduced a revised Basic Digital Asset Act, now including pro-stablecoin provisions. Public consultations began June 17.

BOK Governor Issues Caution

BOK Governor Lee Chang yong has publicly stated he is “not opposed” to KRW stablecoins in principle. However, he warned such an asset could unintentionally increase demand for USD pegged stablecoins like USDT and USDC, complicating foreign exchange management.

“If won stablecoins are issued, it will be easier to exchange them for dollar stablecoins… and that will increase the demand for dollar stablecoins.”

He also warned that stablecoin integration could impact traditional commercial bank profitability.

South Korea’s Stablecoin Crossroads

• USDT 24 hour volume on Korean exchanges reached $96.6M on June 18, nearly double Bitcoin’s volume.
• Domestic “kimchi coins” with stablecoin related components like StormX, fanC, and MEV are also gaining traction.
• Circle’s strategy appears to focus on engaging with both regulators and legislators ahead of potential legal clarity.

Industry insiders describe the landscape as “still at the opinion exchange stage,” with formal policy far from finalized.

What’s Next?

The Financial Services Commission (FSC) is expected to meet with Circle soon. Governor Lee noted that inter ministerial coordination is the next step before stablecoin policies can be finalized.

Expert Opinion: “Circle’s outreach signals strategic market expansion, but central banks like the BOK remain cautious not for lack of tech, but due to real macroeconomic concerns over FX control and monetary sovereignty,” says Professor Sung-min Han, Seoul School of Economics.