Crypto Boom: South Korea's Equities Soar on Stablecoin News

President Lee Jae-myung has played a pivotal role in reshaping South Korea’s digital asset environment by actively promoting the adoption of won-based stablecoins, thereby delivering on a notable campaign promise. This initiative is supported by legislative proposals from his Democratic Party, which aim to establish a comprehensive regulatory system permitting companies with significant capital reserves to issue these digital tokens. The primary objective is to strengthen South Korea’s position in the rapidly evolving global digital asset sector.

Financial markets have responded favorably to President Lee’s endorsement. Specifically, South Korean equities have experienced a marked upswing, and the Kospi Composite Index has emerged as Asia’s best-performing market in the first half of 2025. The surge is particularly pronounced among firms engaged in digital currencies and blockchain technologies, such as LG CNS and Kakao Pay. In addition, the Bank of Korea, alongside leading commercial banks, is in the process of developing pilot programs for won-based stablecoins, initially focusing on regulated banking institutions before considering a wider implementation.

Through these strategic measures, the South Korean government intends to modernize its financial infrastructure, stimulate innovation, and attract increased investment in blockchain and digital assets. With an estimated 20% of the population already participating in digital asset trading, South Korea is positioning itself as a potential global leader in the cryptocurrency market, signaling its commitment to digital currency innovation and transformative change within its financial sector.