Won-Based Stablecoins Could Cut South Korean Merchant Fees by Billions, Report Finds

South Korea’s National Assembly Budget Office estimates that a won-denominated stablecoin could save domestic merchants between 370 billion won and 5.15 trillion won annually in payment processing fees. The wide range reflects different assumptions about how much card spending would shift toward stablecoin payments and what fees those systems would charge. A local stablecoin would give businesses an alternative to a market currently dominated by dollar linked tokens.

Regulatory Debate Still Unresolved

South Korea is still shaping rules for its stablecoin market, with disagreement between the central bank and financial regulator over who should be allowed to issue tokens. The Bank of Korea has pushed for bank-controlled issuers, while the Financial Services Commission has warned that overly strict rules could stifle innovation.

Risks to Banking System Flagged

The budget office cautioned that stablecoin adoption could pull money out of bank deposits, weakening banks’ role in credit lending. It also warned that a wave of redemptions could force issuers to sell reserve assets quickly, risking a break in the token’s peg. The office called for reserve requirements and stronger oversight as the country moves toward wider tokenized securities plans beginning in 2027.