South Korea's central bank governor, Rhee Chang-yong, announced at the Asian Financial Forum in Hong Kong that the country has permitted residents to invest in virtual assets issued overseas due to market pressures. Additionally, financial regulators are considering a new registration system to allow domestic institutions to issue virtual assets. Rhee highlighted that stablecoins denominated in Korean won are expected to be primarily used for cross-border transactions, while tokenized deposits may be more suitable for domestic payments. However, he expressed concerns over the potential misuse of won-denominated stablecoins to circumvent capital flow management measures, especially when combined with dollar stablecoins. Such combinations could lead to rapid capital shifts if exchange rate fluctuations trigger market expectations, posing regulatory challenges, particularly with non-bank institutions involved in issuance.