South Korean Experts Warn of Economic Risks from Dollar-Pegged Stablecoins

Legal and financial authorities in Seoul are sounding alarms about the potential macroeconomic destabilization from dollar-backed stablecoin adoption. The Korea Economic Association’s May 19 symposium revealed growing consensus that USD-pegged tokens could undermine the won’s dominance in domestic transactions.

Panelists at the FKI Tower Conference Center highlighted a dangerous paradox: while stablecoins promise transactional efficiency, their dollar linkages create exchange rate vulnerabilities. Corporate adoption could accelerate capital flight from KRW-denominated assets, with individuals following suit in everyday payments.

This warning comes as global regulators grapple with stablecoin oversight. Unlike decentralized cryptocurrencies, issuer-backed stablecoins introduce complex monetary policy challenges - particularly for export-driven economies like South Korea where currency stability remains paramount.