South Korea's presidential candidate from the Democratic Party, Lee Jae-myung, has announced plans to support the development of a stablecoin pegged to the Korean won.

This proposed won-backed stablecoin aims to curb capital flight and strengthen the country's financial sovereignty.

Democratic Party presidential candidate Lee Jae-myung on Wednesday announced plans to support the development of a stablecoin pegged to the Korean won, aiming to curb capital flight and strengthen the country’s financial sovereignty.

The candidate’s remarks come as part of his broader economic policy proposals ahead of the upcoming March 2024 presidential election.

Speaking at a recent policy meeting, Jae-myung expressed his support for introducing such a stablecoin, which would be tied to the value of the won and serve as a stable means of exchange in the digital domain.

“We need to establish a won-backed stablecoin market to prevent national wealth from flowing overseas and introduce a crypto asset regulatory system that is compatible with the global standard to foster the healthy growth of the crypto financial industry,” he said.

The candidate’s comments on stablecoins come as part of his broader plans to support the development of the cryptocurrency industry in South Korea.

Earlier this year, Jae-myung also revealed plans to legalize spot crypto ETFs, a move that would allow digital assets, such as Bitcoin to be traded on domestic stock exchanges.

As part of this broader crypto initiative, the candidate has also pledged to implement a regulatory monitoring system that would provide investors with secure and transparent access to cryptocurrencies. This framework would enable institutions such as the National Pension Fund to engage with digital assets in a regulated environment.

This marks a significant departure from the traditionally cautious approach of South Korean regulators. Recently, the country lifted its ban on corporate participation in crypto asset trading, representing a major shift from 2017, when cryptocurrency activity was largely prohibited.

While the candidate did not disclose specific details about the proposed stablecoin, his comments suggest an openness to exploring new technologies and financial instruments to enhance the Korean economy.

The candidate’s stance on crypto aligns with his broader vision for a more inclusive and technologically advanced society, which he has highlighted throughout his campaign.

As the election approaches, candidates are unveiling their economic blueprints, which will be closely scrutinized by voters and market analysts. The candidate’s pro-crypto stance could be a key factor in appealing to younger voters and those interested in Web3 technologies.