South Korea has announced a major plan to modernize its financial system, with a strong focus on making the Korean won more globally accessible and supporting the development of won-backed stablecoins.
The roadmap was jointly introduced by the country’s top financial authorities, including the Financial Services Commission, the Bank of Korea, the Financial Supervisory Service, and the Korea Securities Depository. The goal is to remove barriers that limit the use of the Korean won and improve cross-border money movement.
A key part of the plan is the creation of a legal framework for won-backed stablecoins under the upcoming Digital Asset Basic Act. Once the law is implemented, stablecoins backed by the Korean won will become an officially recognized part of the country’s financial system.
The government believes these stablecoins could play an important role in both domestic payments and international transactions. The new legislation is expected to provide clear rules for the issuance, circulation, and oversight of stablecoins and other digital assets.
South Korea is also continuing its work on central bank digital currency (CBDC) technology. The Bank of Korea plans to expand pilot programs that connect an institutional CBDC with tokenized government bonds. In addition, the central bank will participate in international projects focused on improving cross-border digital payments.
Officials have previously stated that banks should play a leading role in issuing won-backed stablecoins because existing banking regulations provide stronger consumer protection and financial stability safeguards.
Alongside stablecoins, the Bank of Korea is developing deposit tokens, which are digital representations of commercial bank deposits operating on blockchain technology. Future uses could include government benefit payments, public vouchers, electric vehicle charging, and other everyday transactions.
The roadmap also includes significant foreign exchange reforms. Following the recent launch of 24-hour foreign exchange trading, authorities plan to create an offshore settlement network that will allow foreign institutions to hold, transfer, and settle Korean won outside South Korea more easily.
Under the proposal, approved overseas financial institutions would be able to offer won settlement services without requiring users to open bank accounts in South Korea. This could make the currency more accessible to international businesses and investors.
The government also plans to relax reporting requirements for foreign currency lending and capital transactions. Over time, regulators aim to move away from a system that relies heavily on prior approvals and instead adopt a simpler reporting-based framework.
Overall, the roadmap signals South Korea’s intention to position the Korean won for greater international use while embracing digital finance. By combining stablecoin regulation, CBDC development, tokenized assets, and foreign exchange reforms, the country is laying the groundwork for a more modern and globally connected financial system.
