Bank of Korea Governor Lee Chang-yong has raised concerns about the potential risks associated with a won-pegged stablecoin, emphasizing threats to financial stability and capital controls. Speaking at the Asian Financial Forum, Lee highlighted the risk of such a digital asset undermining national monetary sovereignty by facilitating capital flight through strategic combinations with U.S. dollar-pegged stablecoins. Governor Lee warned that a won-pegged stablecoin could enable users to convert won into digital assets, swap them for dollar stablecoins, and move capital abroad with minimal oversight. This could challenge existing capital outflow regulations and complicate monetary policy. Lee also noted the growing complexity of regulating stablecoins as non-bank issuers, such as tech firms and DAOs, enter the market, fragmenting regulatory responsibilities. South Korea's cautious stance aligns with global efforts to regulate stablecoins, as seen in the EU's MiCA regulation and similar initiatives in the U.S. and UK. Governor Lee's comments reflect South Korea's proactive approach to ensuring financial stability amid the evolving cryptocurrency landscape.