During the report on policy planning held by the Bank of Korea on the 27th, issues such as the won-denominated stablecoin and the recent rapid increase in household debt were addressed as major agenda items. Some Commissioners argued that the Bank of Korea should show a proactive stance on the introduction of stablecoins.
The Economic Subcommittee of the Presidential Committee on Policy Planning conducted a report by the Bank of Korea from 10:30 a.m. for about an hour and a half. Participants included Jeong Tae-ho, the head of the Economic Subcommittee, along with planning and specialized Commissioners, while Vice Governor Yoo Sang-dae conducted the report.
Vice Governor Yoo and the attending Commissioners discussed the current macroeconomic situation and policy responses, key issues of the Bank of Korea, and medium- to long-term structural reform measures. Regarding macroeconomics, they discussed price and financial stability conditions, ways to enhance the effectiveness of currency policy, measures to promote digital financial innovation, and the necessity of expanding macroprudential policy tools.
They also exchanged broad opinions on various topics related to medium- to long-term structural reform measures to mitigate the rapid decline in potential growth rates, including responses to low birth rates and aging populations, promoting the development of new industries, and reducing regional imbalances.
The Commissioners of the Presidential Committee on Policy Planning urged the efficient and stable management of currency policy while considering household debt and the conditions of the financial and foreign exchange markets, all while promoting price stability and supporting economic recovery.
In particular, many Commissioners expressed serious concerns about household debt and reportedly asserted that the total debt repayment ratio (DSR) should be strengthened as planned. It was also mentioned that they hope the Bank of Korea will consider alternatives that could change the paradigm instead of short-term measures.
There was also discussion on stablecoins. Some Commissioners mentioned that issuing a won-denominated stablecoin is "a demand and trend of the times" and pointed out that they hope the Bank of Korea will demonstrate a more proactive attitude. The Bank of Korea is asserting that stablecoins should be gradually introduced starting from the banking sector due to the weakening of currency policy effectiveness.
Jeong Tae-ho, head of the Economic Subcommittee, emphasized in his concluding remarks, "In the context of rising general price levels following the COVID-19 pandemic, it is necessary to establish proactive measures to manage household debt, which is a burden on achieving our country's potential growth rate target."
He also mentioned, "During this period of economic transformation, it is necessary to conduct a detailed review of the establishment of a digital financial innovation ecosystem, including stablecoins, to prevent us from falling behind, as well as measures to minimize side effects."
The Economic Subcommittee plans to select and specify implementation plans for national tasks through continuous communication with the Bank of Korea, relevant agencies, and the market based on the findings from today's report and discussions.