South Korea Says Won Stablecoins Could Cut Merchant Fees by Up to $3.8 Billion a Year

South Korea's National Assembly Budget Office said won-backed stablecoins could save Korean merchants about $275 million to $3.8 billion a year in payment fees. According to Odaily, the office said dollar-backed stablecoins account for 98.8% of the $312.3 billion global stablecoin market, while won stablecoins could offer merchants a domestic alternative. The budget office warned that deposit outflows from banks could weaken their credit intermediation role, and that large-scale redemptions could force issuers to sell reserve assets, causing stablecoins to lose their peg and undermining market confidence. It called for reserve requirements, limits on stablecoin yields, and tighter oversight of tokens that could threaten financial stability. South Korea also plans to expand tokenized securities in February 2027 and later connect the blockchain securities market with stablecoin payment infrastructure.