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South Korea is concerned that the Won-pegged stablecoin will increase the demand for USD.
Central Bank Governor Lee Chang-yong warned that the issuance of a won-pegged stablecoin could lead to an increase in demand for USD stablecoins, rather than a decrease. He believes this complicates the central bank's foreign exchange management.
This warning contradicts the direction of the new President Lee Jae Myung, who supports the issuance of a won stablecoin to limit the outflow of capital. However, Mr. Lee asserts that the central bank does not completely oppose it, as long as there are appropriate risk control measures.