[National Assembly Hot Figure] Bank of Korea Governor Lee Changyong Admits He Is "Afraid" of Stablecoins

2025 Bank of Korea Audit by the National Assembly's Planning and Finance Committee
"Concerns Over Exchange Rate Volatility and Capital Outflows"

"If we create a won-based stablecoin, many people in our country will take it abroad. That is why, to be honest, I am afraid."

Lee Changyong, Governor of the Bank of Korea, made headlines at the National Assembly audit by going beyond caution regarding stablecoins and stating that he is "afraid." It is rare for the head of the Bank of Korea, whose responsibilities include price and financial stability, to use the word "afraid" at a National Assembly audit.

Lee Changyong, Governor of the Bank of Korea, appeared at the 2025 comprehensive audit held by the National Assembly's Planning and Finance Committee on the 29th and responded to lawmakers' questions regarding stablecoins. Photo by Yonhap News Agency

At the comprehensive audit of the National Assembly's Planning and Finance Committee held the previous day, Governor Lee responded to a question from Ahn Dogeol, a lawmaker from the Democratic Party of Korea, about his stance on introducing a won-based stablecoin by saying, "If a won-based stablecoin is simply introduced, I am extremely concerned about increased volatility in the foreign exchange market and capital outflows."

A won-based stablecoin is a virtual currency designed to minimize price fluctuations by pegging its value to the Korean won, such as "1 coin = 1 won." While it has innovation potential, critics point out that it could destabilize the monetary and financial system.

This is not the first time Governor Lee has expressed caution regarding stablecoins. The Bank of Korea had already sounded a warning in its report, "Key Issues and Response Strategies for Won-based Stablecoins," published on the 27th.

On this day, Governor Lee also commented on the domestic economic situation, stating that the likelihood of the annual economic growth rate exceeding 1% this year is high. With third-quarter GDP growth reaching 1.2%, slightly above the Bank of Korea's previous forecast of 1.1%, analysts expect the annual growth rate to surpass the initial projection.

Regarding real estate policy, Governor Lee emphasized that comprehensive measures, including demand, supply, and easing the concentration in the Seoul metropolitan area, should be pursued over the medium to long term. He stated, "We need policies that dramatically increase the supply by converting office supply plans in Seoul into housing," adding, "Globally, demand for office space is declining, and it will decrease further due to artificial intelligence (AI) and other factors."

This content was produced with the assistance of AI translation services.