"South Korea's last chance to leap to a 'Digital G2'…Now is the time to act"

An analysis found that a 'digital exodus' phenomenon, in which domestic web3 companies are being siphoned overseas due to regulatory uncertainty, is intensifying.

Global web3 venture capital (VC) Hashed's think tank Hashed Open Research (HOR) said on the 23rd in a report titled "Decision and Implementation Strategies toward a Digital G2" that "the most urgent problem currently facing Korea is the digital exodus." Hashed Open Research said, "Huge capital, tax bases, and core technologies are being exported overseas, seriously weakening the nation's digital economic sovereignty and future growth engines."

It also emphasized the need to introduce a KRW stablecoin. Hashed Open Research analyzed, "The phenomenon of 'digital dollarization' could, in the long term, weaken the usability of the won and Korea's monetary sovereignty," and "a KRW stablecoin would be a key channel to defend the domestic fintech and payments market and to allow global investors easy access to KRW-based digital assets."

It urged institutional reform as well. Specifically, Hashed Open Research said it is necessary to ▲early introduction and legalization of a KRW stablecoin ▲build on-chain financial infrastructure and enhance risk management systems ▲institutionalize real-world assets (RWA) and revise institutional rules for institutional investment ▲foster web3 talent and expand investment in industrial infrastructure ▲enact a basic law on digital assets. Hashed Open Research said, "A policy shift focused on execution that balances industrial innovation and financial stability is needed," and "there is a need to shift the paradigm to managing the industry based on transparency and trust rather than regulations that suppress the industry."

Hashed Open Research believes public-private cooperation must be strengthened to nurture the web3 industry. A Hashed Open Research official said, "Securing digital sovereignty amid global hegemonic competition is a matter of survival," and "now is the time to move from discussion to action."