In a groundbreaking move, South Korea has unveiled its strategy to allocate 25% of its national budget through digital currency by the year 2030. This initiative, which reflects a significant evolution in fiscal management, will kick off with subsidies for electric vehicle (EV) charging infrastructure starting in 2026.
The Ministry of Economy and Finance revealed this ambitious plan on January 9 as part of its broader Economic Growth Strategy for 2026. Central to this effort is Project Hangang, a collaboration with the Bank of Korea that is currently assessing the feasibility of digital currency payment systems.
Initially, the program will focus on providing financial support to businesses that install EV charging stations within the first half of 2026. The digital currency rollout aims to distribute national treasury funds as deposit tokens, which will be further tested through the Hangang project. This pilot program involves 100,000 citizens participating for three months, exploring the circulation of deposit tokens on blockchain platforms.
One of the goals of this initiative is to streamline subsidy distribution, thereby minimizing fraudulent claims and expediting settlement periods. A representative from the Ministry of Economy and Finance indicated that there are also plans to integrate the deposit token system with point-of-sale (POS) systems used by retailers.
As South Korea ventures into this digital currency landscape, it is simultaneously developing a regulatory framework for stablecoins. This framework is anticipated to come into effect following the passage of the Digital Asset Basic Act, which is currently under review. The proposed regulations stipulate that stablecoin issuers maintain a minimum capital reserve of 5 billion Korean won and deposit 100% of issued balances in liquid assets such as government bonds or bank deposits.
The Financial Services Commission will spearhead regulatory measures once the licensing standards are established, focusing on reserve asset management and operational requirements. These regulations are intended to foster a stable environment for private digital currencies while supporting the government”s deposit token initiative.
Additionally, revisions to the Foreign Exchange Transactions Act are necessary to prevent potential misuse of stablecoins in illegal currency transfers. Current laws limit individual overseas remittances to $100,000 annually, and stablecoins are not classified under existing payment instrument definitions. Officials have stated that they are reviewing the regulatory boundaries for stablecoins in foreign exchange transactions, with a focus on establishing clear guidelines by the end of 2026.
As South Korea forges ahead with its digital currency ambitions, infrastructure developments will include enhancing electronic wallet distribution and integrating the National Fiscal Integrated Information System with the new deposit token platforms.
