Market News

South Korea's New Leadership Fuels Ambitious Plans for a Won-Pegged Stablecoin

Kaia, a layer-1 blockchain, is set to launch a South Korean won-pegged stablecoin, coinciding with President Lee Jae-myung's inauguration.

This initiative is part of the administration's commitment to fostering a crypto-friendly environment, a key promise during Lee's campaign.

Despite existing legal challenges, as currency issuance is constitutionally reserved for the Bank of Korea, the Democratic Party shows openness to private-sector innovations.

Lawmaker Min Byoung-dug has conveyed support for private-issued stablecoins and is drafting the Digital Asset Basic Act to facilitate a regulatory framework for the crypto sector.

Kaia's backing from Kakao, a leading tech conglomerate in South Korea, enhances the project's credibility and potential impact.

Recent surveys indicate significant optimism among South Korean investors, with nearly 60% planning to increase their crypto holdings during Lee's presidency.

This enthusiasm contributed to a notable stock market rally; payment stocks like Kakao Pay surged by 29.9%.

The appointment of Kim Yong-beom as chief policy officer signals readiness for rapid advancement in stablecoin regulations.

With the Digital Asset Basic Act forthcoming, legislative support appears to be building for new financial frameworks, particularly around stablecoins.

Amid ongoing legal challenges facing President Lee, recent court rulings have provided a clearer path for pursuing his crypto agenda, setting the stage for potential transformation in South Korea's digital asset landscape.