In a defining policy address, new Bank of Korea Governor Shin Hyun-song delivered an exclusive focus on Central Bank Digital Currency (CBDC) development, conspicuously omitting any mention of private stablecoins. This strategic emphasis signals a pivotal shift in the nation's approach to digital financial innovation, prioritizing sovereign digital currency over privately issued alternatives.
Governor Shin stated the central bank must proactively prepare for the future monetary system, with preparation centering squarely on the development and deployment of a digital Korean won. He emphasized that the Bank of Korea will enhance the practical use of CBDCs and related deposit tokens primarily through the advanced second phase of Project Hangang, the bank's flagship CBDC testing initiative.
The complete absence of stablecoin discussion in Governor Shin's address represents a significant policy signal. By focusing solely on the CBDC, the Bank of Korea appears to be prioritizing a state-controlled digital payment infrastructure, potentially sidelining private sector digital currency initiatives that could compete with the central bank's monetary authority.
Governor Shin outlined two concrete pathways for elevating the status of the Korean won internationally. The domestic track involves Project Hangang's second phase, which will likely expand beyond technical proofs-of-concept to explore real-world applications. The international track involves collaborations like the Bank for International Settlements' (BIS) Agora Project, which seeks to build a platform for cross-border payments using multiple CBDCs.
Meanwhile, South Korean financial authorities are confronting a staggering surge in consumer grievances related to virtual assets, with official data revealing crypto-related complaints skyrocketing by 1,014% in 2025. The Financial Supervisory Service (FSS) received 4,491 virtual asset complaints this year, a dramatic rise from just 403 in the latter half of 2024.
Analysts identified the primary catalyst: widespread issues with promotional benefits for first-time API traders on domestic virtual asset exchanges. Many consumers reported exchanges failing to honor advertised incentives for using automated trading interfaces. Other recurring complaint categories include withdrawal delays, unexplained fee deductions, account freezing without clear justification, and poor customer service responsiveness.
The complaint surge arrives amid South Korea's ongoing efforts to establish comprehensive digital asset regulations through the Virtual Asset User Protection Act, which took full effect in 2024. The FSS has increased its monitoring of exchange operations and marketing practices, but the sheer volume of new complaints suggests regulatory implementation and market compliance have not kept pace with consumer activity.
Financial technology experts point to several converging factors: South Korea's high cryptocurrency adoption rate among retail investors, the proliferation of algorithmic trading tools making API access crucial, and exchanges using promotional offers as key customer acquisition tools. Professor Kim Jae-hyun noted, "The data shows a clear gap between marketing innovation and operational reliability."
The FSS has acknowledged the data and indicated that addressing virtual asset consumer protection is now a top priority. The agency is likely to issue new guidelines specifically governing exchange promotions and API service terms, and may mandate clearer disclosure requirements.
