Jang Dong-hyuk Opposes BOK’s Project Hangang, Says CBDC Must Not Become a Tool to Control the Public

Jang Dong-hyuk, leader of the ruling People Power Party, said he opposes the Bank of Korea’s digital currency pilot, Project Hangang, saying it could infringe on citizens’ financial information and property rights.

In a Facebook post on Sept. 14, Jang said the Bank of Korea is accelerating plans to introduce a central bank digital currency, or CBDC, through the so-called Project Hangang. While some view CBDCs as a technology that could improve the convenience and efficiency of payments, he said that convenience alone is not a reason to rush.

He said authorities must first answer how far citizens’ transactions could be tracked, whether the system could enable control over where money is spent and how long it can be used, and whether people’s freedom to choose how to use money would be protected. South Korea already has one of the world’s most advanced financial and payment infrastructures, he wrote, adding that there is no reason to put citizens’ property rights and financial information at risk just to move first.

Jang also compared South Korea’s approach with CBDC policies in other major economies. He said the US has barred efforts to pursue a retail CBDC over concerns about financial stability and personal privacy, while Japan and other advanced economies are not rushing to formally issue one. Countries pursuing large-scale pilot programs or phased mandates amount to China, Russia and India, he added.

Technology should exist to make life easier for citizens, not to become a tool of power used to control them, Jang wrote. He added that he strongly opposes the introduction of a CBDC until legal and institutional safeguards that can reassure the public are fully in place.

Project Hangang is a digital currency pilot being pursued by the Bank of Korea together with the Financial Services Commission and the Financial Supervisory Service, among other agencies. Unlike a retail CBDC issued directly by the central bank to the general public, the project is based on a wholesale CBDC used by financial institutions such as banks. Under the structure, banks issue deposit tokens and use them in real-world payments and other transactions.