The South Korean government plans to establish a legal framework for the issuance of Korean won stablecoins, and promote the internationalization of the Korean won.

According to South Korean media reports, the Financial Services Commission, Bank of Korea, Financial Supervisory Service, and Korea Securities Depository have jointly announced relevant plans, aiming to transform the South Korean won from a restricted-convertible currency to a freely convertible one and improve the cross-border capital flow system. Under the framework of the Digital Asset Basic Act, the South Korean government intends to clarify the issuance and circulation rules for KRW-denominated stablecoins, providing an institutional basis for the entry of KRW-pegged stablecoins into the market. Furthermore, the Bank of Korea will advance a pilot project combining institutional central bank digital currencies (CBDCs) with tokenized government bonds, and participate in the Bank for International Settlements (BIS)-led Project Agora to explore a digital cross-border payment system.