Won Stablecoins Could Cut South Korean Merchant Fees by Billions

A recent report from the National Assembly Budget Office in South Korea estimates that won stablecoins could cut annual fee costs for merchants by up to $3.76 billion if they replace part of the credit-card payment market.

The report used projected domestic payment-card spending in 2025 and adjusted assumptions for credit-card and stablecoin fee rates, along with the share of payments shifted from cards. Under conservative estimates, with merchant card fees at 1.1% and stablecoin fees at 0.5%, merchants would save about $270 million a year if 5% of card payments moved to stablecoins.

However, in an optimistic scenario, assuming card fees of 1.5% and stablecoin fees of 0.1%, annual savings would reach about $3.76 billion if won stablecoins replaced 30% of card payments. The report cited blockchain-based payment infrastructure as a key reason costs could fall.

The National Assembly Budget Office proposed requiring reserve assets at least equal to the amount of won stablecoins issued and limiting those reserves to safe assets such as cash and short-term government bonds. It also said direct interest payments on stablecoin holdings should be restricted, while rewards tied to payments and usage could be allowed within certain limits.