South Korea's Won Stablecoin Plans Face Merchant Network Hurdle

South Korean banks and fintech firms are accelerating efforts to launch a won‑denominated stablecoin, seeking to expand its use beyond transfers to payments, settlements and asset‑management services. Recent agreements include Toss Bank and KG Inicis partnering with blockchain platform Solana, Danal working with Busan Bank, and iM Bank collaborating with OpenAsset to complete technical proofs of concept.

Industry analysts stress that the stablecoin’s success hinges on building a wide merchant acceptance network. Research from the Korea Institute of Finance finds that without sufficient merchant coverage, consumer adoption remains below 2 percent, even when 90 percent of merchants are theoretically able to accept the token. As Baek Jin‑soo of the institute put it, “The key variable for stablecoin diffusion is the actual merchant infrastructure, not discount incentives.”

The Bank of Korea’s mid‑year financial stability report warned that as the won stablecoin system is formalised, systematic monitoring of issuance balances, reserve asset composition and redemption flows will be essential. 박상훈 of the Bank’s Financial Stability Department said, “If the won stablecoin is legalized and its issuance scale grows, its impact on short‑term financial markets could increase, requiring a robust monitoring system.”