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Won-denominated stablecoins could cut South Korean fees by up to $3.8B

A National Assembly Budget Office analysis estimates merchant payment-fee savings of 370 billion won to 5.15 trillion won per year, while warning that mass redemptions could destabilize token pegs.

Reported · Written up by our desk · Stablecoins

South Korea’s National Assembly Budget Office says won-denominated stablecoins could reduce payment fees for merchants by as much as 3.8 billion dollars annually.

The office estimated savings could range from 370 billion won (275 million dollars) to 5.15 trillion won depending on assumptions about how much card spending shifts to stablecoin payments and the fee levels charged by stablecoin payment systems.

CoinDesk reports the budget office also warned that wider stablecoin adoption could shrink banks’ role as credit intermediaries, and that large redemption events could push issuers to sell reserve assets, potentially breaking token pegs and weakening confidence.

The analysis highlights ongoing disputes over who should be allowed to issue tokens, noting the Bank of Korea’s preference for bank-controlled issuers with at least 51% ownership, versus the Financial Services Commission’s argument for broader innovation, and it called for reserve requirements, limits on stablecoin rewards, and stronger oversight for tokens that could pose financial stability risks.

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