South Korea’s financial authorities are moving to formalize the framework for won-based stablecoins, introducing key principles focused on full collateralization and guaranteed redemption rights. At the same time, the role of crypto exchanges in facilitating circulation has become a new focal point, potentially shaping the future structure of the domestic digital-asset market.
According to the draft guidelines, issuers of won-denominated tokens must maintain reserves exceeding the total issued amount, while explicitly granting users the right to redeem tokens for cash. The rule is intended to prevent a “coin-run” scenario similar to the mass redemptions that destabilized overseas stablecoin markets in the past. The Financial Services Commission (FSC) noted that “reserve assets must be held in cash or cash-equivalents at 100% or more of the issued volume, and users must be given full redemption rights.”
Market observers expect the new standard to strengthen confidence in stablecoins. However, until a full regulatory structure is in place, several challenges remain — including potential conflicts of interest between issuers and exchanges, transparency of reserve assets, and the reliability of redemption mechanisms. Concerns have also been raised that if exchanges directly participate in issuance or distribution, additional oversight will be required to ensure fair trading and internal controls.
Experts emphasize that exchanges will play a central role in ensuring the success of Korea’s stablecoin ecosystem. “Stablecoins must go beyond payment and remittance functions,” said one industry source. “If they can circulate within exchange markets, liquidity and real-world use cases will expand simultaneously.” Some major exchanges are reportedly reviewing the tokenization of existing won deposits as part of this transition.
With the release of the government’s draft guidelines, stablecoins appear poised to move beyond experimental status toward integration with mainstream financial and payment systems. Their use in K-content, fandom economies, global settlements, and cross-border remittance could significantly accelerate adoption.
Nonetheless, experts caution that even with full collateral and redemption guarantees, transparency in reserve composition, governance structure, and independent auditing remain essential. The FSC plans to reference global precedents — including the U.S. and EU stablecoin regimes — to tailor its oversight framework to Korea’s market.
Ultimately, this initiative represents a turning point for won-based digital assets as they seek credibility and stability within the regulated financial system. Built upon the foundation of full collateralization, the next challenge will be realizing genuine circulation and practical use.
