The government will execute one-fourth of the budget as digital currency (deposit tokens) by 2030. It will pay part of the treasury funds used for vouchers or subsidies in digital currency. Treasury funds refer to budget funds secured by the government through taxes or by issuing Government Bonds that have not yet been executed. Given that this year's budget amounts to 728 trillion won, the scale of treasury funds to be executed with deposit tokens is expected to be significant.
◇ Electric vehicle charger installation subsidies to be paid as deposit tokens in the first half
In the 2026 economic growth strategy released on the 9th, the government unveiled a plan to advance treasury fund management using digital currency. In connection with Project Hangang, the Bank of Korea (BOK)'s ongoing experiment to build a Central Bank Digital Currency (CBDC) payment system, the core is to pay part of the treasury funds as deposit tokens starting this year.
Project Hangang is a program to test whether deposit tokens issued by the banking sector can actually circulate and be redeemed on the Blockchain built by the Bank of Korea (BOK). Beyond simple payment and circulation of deposit tokens, it is also checking whether they can be used like vouchers by restricting usage or limits.
The government will first use deposit tokens for paying subsidies and vouchers. In the first half of this year, subsidies received by businesses that install electric vehicle chargers will be paid in deposit tokens, and after review, the scope of application will be expanded step by step. The government expects this to prevent improper payments and shorten the settlement period.
It will also establish the legal basis necessary for deposit token payments and settlements. The current Treasury Funds Management Act defines treasury funds as "all cash paid into the state's revenue or into funds, and items with cash-equivalent value," which does not include digital assets such as deposit tokens. Accordingly, a legal amendment is required to settle treasury funds with deposit tokens.
It will also expand infrastructure for deposit token payments and settlements. The plan is to distribute electronic wallets that can store deposit tokens and link the government-run Digital Budget and Accounting System (dBrain) with the deposit token system to digitize the entire process from treasury execution to payment and settlement. A Ministry of Economy and Finance official said, "We also plan to review linking the deposit token system with point-of-sale (POS) terminals used in retail stores."
◇ Establishing a regulatory framework for stablecoins… considering amendments to the Foreign Exchange Transactions Act
The government will also push to institutionalize stablecoins, a pillar of the private digital currency ecosystem. The goal is to establish a regulatory framework as soon as the Digital Assets Basic Act (stage two of the virtual asset bills), which has not yet been finalized, is completed. Stablecoins are virtual assets whose value is linked to legal tender such as the dollar or to real assets such as gold or bonds.
In the National Assembly, a plan is under active review to set the issuer's minimum capital requirement at 5 billion won and to require 100% of the outstanding issuance to be deposited as high-liquidity reserve assets such as deposits and Government Bonds. Once the criteria for issuer authorization, reserve asset management plans, and the guarantee of redemption rights are finalized, the government plans to proceed with follow-up legal amendments led by the Financial Services Commission (FSC).
The law will also be amended to prevent the side effects of stablecoins being abused for illegal foreign exchange transactions. Under current foreign exchange transaction rules, the annual limit for undocumented overseas remittances is $100,000 for individuals and $50 million for corporations (based on the large-scale foreign currency borrowing report). However, because stablecoins are excluded from the payment instruments covered by the Foreign Exchange Transactions Act, concerns about tax evasion have been raised.
A Ministry of Economy and Finance official said, "We are reviewing how far to allow stablecoins and what to restrict in foreign exchange transactions," adding, "Once stage two legislation is completed, we will flesh out the direction of legal amendments accordingly." The official added, "We aim to push for legal amendments within the year, and if that is not feasible, we will at least disclose the direction of the amendments."