The South Korean Central Bank is cautious about the Korean won stablecoin due to concerns about forex stability and the structure of the banking industry.

According to the Korea Economic Daily, Bank of Korea Governor Lee Chang-yong has expressed a cautious attitude towards the launch of a Korean won-based stablecoin. Lee pointed out that while he does not oppose the Korean won stablecoin, factors such as forex market stability and changes in the banking structure need to be considered. He is concerned that the Korean won stablecoin could increase the demand for dollar stablecoins, complicating forex management. Lee also emphasized that the active use of stablecoins could shift payment settlement functions from the banking sector to the non-banking sector, impacting the revenue structure and business model of banks. The Bank of Korea has been conducting experiments and research on central bank digital currency (CBDC), but the formal issuance of stablecoins requires coordination with financial regulatory authorities. Lee stated that he will coordinate policies with the Ministry of Finance, the Financial Services Commission, and other departments, taking into account both the positive functions and potential risks of stablecoins.