South Korean economists urge caution on won stablecoin legalization

South Korean economists believe a won-denominated stablecoin could innovate payment systems but have urged a cautious approach to its legalization, citing concerns over risks such as sudden mass withdrawals and money laundering, Yonhap News reported. According to a survey by the Korean Economic Association, 37.1% of respondents identified financial innovation and improved efficiency as the most important driver for introducing a won stablecoin. However, 28.6% were skeptical, stating there is little need for such an asset. Regarding issuance, a majority of respondents (58.1%) believe that both banks and select non-bank financial institutions meeting specific requirements should be permitted to issue the stablecoin, while 35.5% argued that issuance should be restricted to banks only.