Seoul — South Korea is positioning stablecoins as a tangible strategic opportunity rather than a speculative experiment, according to a leading fintech authority speaking at the Onchain Symposium in Seoul. Kim Hyoung-joong, president of the Korea Fintech Society, outlined why domestically issued stablecoins are now seen as viable assets and why a unified national approach is urgently needed.
Stablecoins address core weaknesses of traditional cryptocurrencies by maintaining a guaranteed 1:1 peg, often backed by 100% fiat reserves to reduce volatility and preserve purchasing power. That model, paired with stronger institutional oversight, has helped answer early concerns about intrinsic value. Enhanced legal frameworks are increasingly providing the protections necessary for these instruments to operate securely and reliably, shifting perception from skepticism to pragmatic adoption.
Global proof-of-concept from major issuers such as Tether and Circle has demonstrated real-world utility. These stablecoins have gained traction in regions like South America for transaction efficiency and have attracted renewed interest amid policy shifts in North America. Those examples show how stablecoins can enable faster, lower-cost transfers and greater financial inclusion when supported by clear regulation and solid reserve practices.
“Issuance alone is not enough.”
— Kim Hyoung-joong, Korea Fintech Society
Kim emphasized that issuance alone is not enough. To compete globally, South Korea must move beyond isolated pilot projects and build the foundational distribution infrastructure that allows stablecoins to integrate into everyday commerce, payments, and broader DeFi and blockchain ecosystems. A fragmented approach risks ceding ground to other jurisdictions that are developing cohesive stablecoin strategies and payment rails.
A unified national strategy would support global competitiveness, accelerate market adoption, and ensure interoperability with existing financial systems and crypto infrastructure. For South Korea, the next phase involves not only defining regulatory standards and reserve requirements but also investing in distribution networks, custody solutions, and merchant acceptance that make stablecoins practical for daily transactions.
- Regulatory standards and clear reserve requirements
- Investment in distribution networks and payment rails
- Custody solutions and merchant acceptance to enable everyday use
- Interoperability with existing financial systems and DeFi ecosystems
As policymakers and industry stakeholders weigh next steps, the focus on infrastructure, legal clarity, and coordination will determine whether South Korea can transform stablecoins from a promising concept into a resilient, widely used component of its digital finance landscape.
