Stablecoins have become a new national initiative in South Korea.

According to Gate News bot and The Block, as the legislation on stablecoins in the United States progresses rapidly, South Korea has made cryptocurrency pegged to currency its latest economic focus.

The newly elected President of South Korea, Lee Jae-myung, vowed to approve the issuance of stablecoins pegged to the Korean won, which are currently prohibited, and to promote the development of the local stablecoin market.

After the election, left-wing MP Min Byeong-de proposed legislation to establish a licensing system and put forward a series of requirements for potential stablecoin issuers.

He stated: "Using US dollar stablecoins is directly related to capital outflow, while settling overseas transactions with Korean won stablecoins can reduce the domestic capital exchanged for foreign currency."

Through the Korean won (KRW) stablecoin, the new South Korean government seeks to strengthen the country's independence in foreign currency assets, expand the digital financial landscape based on the Korean won, and ultimately broaden its economic and monetary framework.

Min Bingde stated: "This initiative is expected to yield multiple economic benefits, such as reducing trade costs, diversifying foreign exchange risks, and increasing global investment in the local economy."

During an interview with the crypto media, Min Bingde explained that the goal is to create an environment where private entities can issue stablecoins pegged to the Korean Won, and various industries (i.e., content creators, game developers, and e-commerce platforms) can actively use these tokens.

The private sector in South Korea is ready for the emergence of stablecoins, with leading mobile payment platform KakaoPay having submitted a relevant patent application earlier this month.

Sam Seo, the chairman of the Kaia DLT Foundation, wrote: "The Korean won-backed stablecoin can fill a gap and serve as an alternative to traditional payment methods such as bank remittances or currency exchanges. Theoretically, Korean tourists traveling to neighboring countries or visiting Korea can exchange Korean won for USD and vice versa without using cash, but instead using stablecoins, which can almost eliminate commission costs."