[Exclusive Interview] Min Byung-deok: "Let's block the outflow of ₩131 trillion... Making Korea a key currency issuer for digital assets"

Exclusive Interview with Min Byung-deok, Member of the Democratic Party of Korea

Background of the Proposal for the "Digital Asset Basic Act"

₩131 trillion flowing overseas... Reshoring is desperately needed

Expanding the economic territory of the Korean won through stablecoins

Permitting leverage trading... Strengthening global competitiveness

"Digital assets are no longer an experiment on the periphery. They are now the heart of the global economy."

Rep. Min Byung-deok (pictured) of the Democratic Party of Korea stated in an interview with BloomingBit on the 26th, "The previous administration's indifference and ambiguous regulations on digital assets eventually led to an outflow of assets amounting to ₩131 trillion," leveling criticism and offering his perspective.

According to statistics from the National Tax Service, as of 2023, the reported amount of overseas digital assets held by high-net-worth individuals and corporations is about ₩130.8 trillion. Considering that only those holding at least ₩500 million were required to report, experts believe the actual outflow is likely much greater.

Massive National Wealth Outflow... 'Reshoring' of Digital Assets Is Essential

Rep. Min said, "The regulatory vacuum of the former administration, which focused only on investor protection while neglecting the industrial entry base, has, in effect, let Korea's money flow overseas." He emphasized, "Now there's a dire need to bring digital assets back into the country through reshoring."

On the 10th of last month, Rep. Min proposed the "Digital Asset Basic Act" to fill the institutional gap in Korea's digital asset sector. He explained that the act is designed to meet global standards while boosting domestic industry competitiveness.

In particular, the intent of the Basic Act is to promote the return of digital assets that have flowed abroad and to restore the industry ecosystem. Rep. Min stated, "The Basic Act provides an institutional framework that enables domestic businesses and institutional investors to operate with peace of mind," adding, "It strikes a balance between fostering the digital asset industry and protecting investors."

Potential to Expand 'Korean Won Economic Territory' Through Stablecoins

Institutionalizing the Korean won stablecoin is another major pillar of the legislation. The Basic Act stipulates that companies with at least ₩500 million in capital, upon official authorization, may issue a Korean won stablecoin.

Rep. Min foresees that a won-based stablecoin will be a critical foundation for Korea to secure global leadership in the digital economy. He explained, "The Korean won stablecoin has the potential to serve as a key currency in the digital economy," and "When linked with K-content, e-commerce, and global platforms, it can be used as a payment and settlement tool between overseas users."

He added, "Once the Korean won stablecoin takes hold as a global settlement method, foreign investors will also be able to directly access domestic digital assets, which will activate trading and lead to trillions of won in tax revenue."

Furthermore, Rep. Min argues that the non-banking sector should also be allowed to participate in the stablecoin market. This is in opposition to the monetary authorities' position of limiting issuers to the banking sector.

Rep. Min stated, "Major countries like the United States and Singapore allow private issuance of stablecoins and have established supervisory frameworks," adding, "Korea, too, must secure institutional stability and adopt a globally compatible model that combines 'private-led' innovation and 'public safety mechanisms.'"

Full-scale Approval for 'Leverage Trading'

Rep. Min also addressed the necessity of allowing leverage trading for digital assets. The Basic Act authorizes digital asset service providers to provide credit, making leverage trading possible on domestic exchanges such as Upbit and Bithumb.

Rep. Min said, "Leverage trading is a standard function even in traditional finance," stating, "Institutionalized credit provision will expand investor choice and boost market liquidity." He continued, "The Basic Act is designed to allow only qualified businesses to offer leverage features," and, "This is intended to support domestic companies in mitigating disadvantages when competing with overseas platforms and to help them secure global competitiveness."

Regarding the Digital Asset Committee, which will be launched as the Act is enacted, he described it as a 'policy control tower' for digital assets. The committee will be a presidential body stipulated in the Basic Act and will be required to establish an industrial development roadmap—the 'Digital Asset Basic Plan'—every three years.

Rep. Min said, "The Committee should be composed primarily of private experts with expertise in market and technology trends," adding, "It will serve as the policy control tower for both fostering the industry and achieving global compatibility."

As the most urgent task, he cited "systematizing digital assets" as the committee's top priority. Rep. Min stated, "The most pressing issue is establishing classification criteria and a sectoral framework for digital assets." He continued, "The dispersion of supervisory authority must also be addressed, and at the same time, sub-regulations for key issues such as the Korean won stablecoin, credit provision, and issuance controls stipulated in the Basic Act must be refined."

Lee Jun-hyung, Lee Young-min, BloomingBit reporters gilson@bloomingbit.io