Triggering a Surge in Fintech Stocks
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| Bank of Korea Governor Rhee Chang-yong: "Pushing for Institutionalization of Korean Won Stablecoins" |
A bullish wave swept through South Korea’s fintech and e-payment stocks today (June 19) following positive remarks from Bank of Korea (BOK) Governor Rhee Chang-yong regarding the need for a Korean won-pegged stablecoin.
The market reacted enthusiastically, with Korea Information & Communications (KICC) hitting the upper price limit for the day, and investors scrambling to identify potential beneficiaries of this emerging theme.
As of 2:22 p.m. KST, shares of KICC had soared by 29.98%, reaching their upper trading limit at ₩10,710, according to data from the Korea Exchange.
Other major players in the e-payment sector also enjoyed strong gains:
Shinsegae I&C: +25.07%
Korea Electronic Certification Authority: +15.99%
Café24: +5.40%
KG Inicis: +4.47%
NHN: +3.73%
What Are Stablecoins?
Stablecoins are digital tokens designed to maintain a fixed value by pegging themselves to traditional assets like fiat currencies or commodities. The most common type is a fiat-backed stablecoin, which is usually backed 1:1 by reserves of a currency such as the U.S. dollar or, in the case of emerging projects, the Korean won.
Unlike highly volatile cryptocurrencies like Bitcoin or Ethereum, stablecoins are designed to offer price stability, making them more suitable for everyday payments, cross-border transfers, and integration into regulated financial systems.
Stablecoins are issued and transacted on blockchain networks, enabling peer-to-peer exchange without relying on centralized intermediaries. Depending on the design, they can be backed by fiat reserves, overcollateralized crypto assets, or algorithmic mechanisms that maintain their peg.
A Clear Policy Shift from the BOK Governor
The recent market surge appears to be directly linked to Governor Rhee’s remarks at a press conference the previous day, where he stated:
“To be clear, we need a Korean won stablecoin, and I am not opposed to its issuance.”
This is a notable departure from his previously cautious stance. Until now, Governor Rhee had warned that if non-bank entities were allowed to freely issue won-backed stablecoins, they could act as substitutes for fiat currency, potentially undermining the effectiveness of monetary policy.
The central bank chief’s newfound openness has reignited optimism around the possibility of a domestic stablecoin ecosystem, giving a strong boost to investor sentiment.
Momentum From the U.S. Also Playing a Role
Investor confidence also appears to be bolstered by developments in the United States, where—for the first time—a federal bill regulating the issuance and circulation of stablecoins has passed. The GENIUS Act (short for “Guardrails and Enhancements for Nationally Issued and Uniform Stablecoins”) cleared the Senate on June 17 with a vote of 68 in favor and 30 against.
This legislative breakthrough has strengthened expectations that South Korea may also accelerate its efforts to regulate and institutionalize stablecoins. Major international outlets such as The Wall Street Journal and Bloomberg have noted that the U.S. move could significantly speed up the global formalization of the stablecoin market.
A Key Campaign Pledge and Policy Priority
The idea of a Korean won stablecoin is not new—it was one of President Lee Jae-myung’s campaign pledges. With this political backing and growing policy momentum, public interest in the new administration’s broader digital asset strategy is also heating up.
As international regulatory frameworks begin to solidify, and as key institutions like the Bank of Korea warm to the idea, stablecoins pegged to local fiat currencies may soon become more than just a speculative concept—they could be an integral part of the next digital financial era.
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