PANews reported on May 12 that according to Cryptonews, South Korean presidential candidates have engaged in a fierce debate over stablecoin policies. Lee Jae-myung, the candidate of the largest opposition Democratic Party, advocated on May 8 that "a Korean won stablecoin market should be established as soon as possible," warning that otherwise there would be "outflow of national wealth." The proposal was strongly opposed by Reform Party candidate Lee Jun-seok, who cited the Terra crash in 2022, pointing out that the algorithmic stablecoin KRT had disastrous consequences due to the lack of real asset endorsement.
Lee Jae-myung's supporter and former lawmaker Kim Byung-wook countered that global regulators have clearly distinguished between algorithmic stablecoins and compliant stablecoins with a 1:1 collateral of cash/treasury bonds, and that Korean won stablecoins can reduce cross-border remittance costs. Industry insiders revealed that this is the first time that South Korean politicians have publicly debated technical issues on crypto assets, and the election results may determine the direction of the country's crypto regulation. The general election will be held on June 3.
