Korea FSC Chair Nominee Mentions Stablecoin on “National” Blockchain

South Korea’s FSC Chairman nominee has indicated that the country’s stablecoin could be issued on a “national” blockchain.

While no concrete details were provided, this signals the preferred direction of government leadership regarding existing stablecoins and blockchain infrastructure.

National Blockchain to Replace Ethereum

During Wednesday’s confirmation hearing, FSC Chair nominee Lee Eog-weon was questioned by ruling Democratic Party lawmaker Lee Kang-il about developing an independent blockchain mainnet for the country’s stablecoin.

The nominee responded, “Current stablecoins are issued on networks like Ethereum (ETH) and Tron (TRX). You mean replacing them and developing a blockchain mainnet suited for Korea. I will discuss this possibility with relevant ministries.”

If implemented, this concept would mark a global first—a state-run or state-supported blockchain hosting stablecoins. Regulators worldwide consistently seek to oversee stablecoins and often demand information access rights. Questions about blockchain nationality, however, rarely emerge in these regulatory efforts. Even Korean lawmakers recently introduced several stablecoin-related bills in the National Assembly, but none propose domestic blockchain infrastructure.

However, discussions about sovereign blockchain technology have recently gained traction in South Korea. The view that stablecoins require domestic oversight from a monetary sovereignty perspective drives these discussions. This aligns with Korea’s historical preference for national services over global alternatives—favoring Naver over Google for search and KakaoTalk over WhatsApp for messaging.

Lee did not elaborate on the specifics of this ambitious national blockchain and stablecoin initiative. He emphasized the importance of advancing the blockchain industry and stated he would “review how to identify innovations and added value that can connect to emerging industries.”

Stability Is Most Critical

Beyond the underlying blockchain infrastructure, the ruling party’s leadership has endorsed banks as the primary issuers of a Won-denominated stablecoin.

During a Wednesday press conference, Democratic Party Floor Leader Kim Byung-kee emphasized the need for caution in stablecoin legislation. He stated, “At the very least, we will be cautious and conservative about getting ahead of the United States.”

Kim also adopted a conservative position on stablecoin issuance, warning that “it is very risky for (crypto) exchanges to issue financial products.” Kim argued that stability remains the most critical factor for any stablecoin—though he provided no further details about specific exchange concerns.

Instead, Kim proposed a consortium model where “the existing banking sector becomes the center, with (crypto) exchanges or other institutions participating.” This approach would leverage traditional banks’ stability and established infrastructure while enabling broader industry participation.

To date, no local crypto exchange has publicly proposed issuing its own stablecoin. Instead, the country’s top two exchanges—Upbit and Bithumb—have partnered with major local payment providers Naver Pay and Toss, respectively, for stablecoin settlement services.