[Post] Changes in Payment Settlement Methods Brought by the Introduction of Korean Won Stablecoin

Features and Limitations of the Current Payment and Settlement Structure

Although the domestic payment and settlement system maintains stability and reliability, it also faces structural limitations such as settlement delays, multi-layered intermediaries, and low efficiency in international remittances. Therefore, a new payment and settlement structure utilizing Korean won stablecoins is gaining attention. Partially licensed stablecoins backed 1:1 by the Korean won can operate under KYC·AML procedures of financial institutions, and enable real-time final settlement based on DLT, while also reducing costs and increasing transparency. Stablecoins are not “virtual currencies,” but serve as a new monetary layer to enhance the efficiency of existing financial infrastructure.

Changes in Payment and Settlement Methods Brought by Korean Won Stablecoin Applications

Stablecoin transfers transfer asset ownership simultaneously with remittances, enabling instant payments without settlement. In card payments, the intermediate settlement process is shortened, merchant collection cycles are accelerated, and transaction fees are reduced. Cross-border remittances via a bridging payment structure between Korean won and foreign currency stablecoins reduce intermediary banks, with remittance and currency exchange executed simultaneously, saving costs and time. Ultimately, stablecoins operate as a revolutionary technological infrastructure that maintains the centralized structure of financial institutions while significantly improving payment efficiency and speed.

Future Response and Scalability of Korean Won Stablecoin Applications

The combination of AI and stablecoins will realize intelligent payment entities. AI agents can automatically pay subscription fees, utility bills, etc., by learning user patterns, enabling conditional fund management for enterprises. Conditional payments based on smart contracts form the foundation for M2M payments between autonomous vehicles and IoT devices. Additionally, AI can automatically verify KYC·AML compliance during remittances, enabling “compliance-embedded” remittances, and support a 24/7/365 real-time remittance environment.

Insights for Policy, Regulation, and Stakeholders

Empirical testing should be prioritized through regulatory sandboxes before legislation, and it is necessary to adjust account-centric regulatory frameworks such as the “Electronic Financial Transactions Act” and the “Foreign Exchange Transactions Act” to suit the DLT environment.

Financial institutions need to evolve from mere payment intermediaries to on-chain/off-chain payment hubs, and plan for programmable financial services utilizing smart contracts and AI agents.

Companies can improve supply chain efficiency through multi-currency payments and automated fund management based on stablecoins, while users can benefit from reduced fees, increased immediacy, and expanded financial accessibility.

Moving Toward an “Era of Autonomous Capital Flows”

Stablecoins are no longer experimental virtual assets but are becoming the new economic infrastructure integrating AI, DLT, and programmable currencies. This is not only a technological advancement to enhance payment speed but also the starting point for an “autonomous execution financial system” that automates capital flow, verification, and recording.

Policy-wise, empirical validation and institutional improvements must proceed in parallel, and industry participation through private innovation should be synchronized. Enterprises and users will redefine the boundaries of time, cost, and trust, experiencing new economic efficiencies.

Ultimately, the introduction of Korean won stablecoins will lead Korea’s financial sector to a new payment and settlement revolution that balances trust and technology, gaining a competitive edge globally.

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