South Korea to Execute 25% of National Budget as Digital Currency by 2030

TLDR:

• South Korea will distribute one-fourth of its national budget through deposit tokens by 2030, beginning with electric vehicle charger subsidies this year. 
• Project Hangang tests deposit token circulation on blockchain platforms, with 100,000 citizens participating in the three-month pilot program. 
• Proposed stablecoin regulations require issuers to maintain 5 billion won capital and deposit 100% of issued balances in liquid reserve assets. 
• Foreign Exchange Transactions Act revisions aim to prevent stablecoin misuse in illegal currency transfers beyond current remittance limits. 

South Korea’s government announced plans to execute a quarter of its national budget through digital currency by 2030, marking a significant shift in fiscal management. 

The initiative will distribute national treasury funds as deposit tokens, beginning with electric vehicle charger subsidies in 2026. 

With the current budget standing at 728 trillion Korean won, the program represents a substantial commitment to blockchain-based financial infrastructure.

Electric Vehicle Subsidies Launch Digital Currency Rollout

The Ministry of Economy and Finance unveiled its digital currency strategy on January 9 as part of the 2026 Economic Growth Strategy. 

The plan connects directly with the Bank of Korea’s Project Hangang, which tests central bank digital currency payment systems. 

Initial implementation will focus on subsidies for businesses installing electric vehicle charging infrastructure during the first half of 2026.

Project Hangang evaluates whether deposit tokens issued by commercial banks can circulate effectively on blockchain platforms. 

The system allows restrictions on token usage, making them suitable for vouchers and targeted subsidies. Testing began in April 2025 when 100,000 citizens used deposit tokens for three months at participating merchants.

The government expects deposit tokens to reduce improper subsidy claims and accelerate settlement periods. 

A Ministry of Economy and Finance official noted the expansion plans, stating “we are also considering linking the deposit token system with POS systems used in retail stores.” 

Legal frameworks require updating since current treasury management laws do not recognize digital assets as valid payment instruments.

Stablecoin Regulation Framework Under Development

South Korea will establish comprehensive stablecoin regulations following passage of the Digital Asset Basic Act. 

The legislation currently under review would require issuers to maintain 5 billion Korean won in capital reserves. Issuers must also deposit 100 percent of issued balances in liquid assets such as government bonds or bank deposits.

The Financial Services Commission will lead regulatory implementation once licensing standards are finalized. 

Proposed rules cover reserve asset management, redemption procedures, and operational requirements for stablecoin issuers. 

These regulations aim to create a stable private digital currency ecosystem alongside government deposit tokens.

Foreign exchange transaction laws need revision to prevent stablecoin misuse in illegal currency transfers. Current regulations limit individual non-documented overseas remittances to 100,000 US dollars annually. 

However, stablecoins fall outside existing payment instrument definitions under the Foreign Exchange Transactions Act. 

A Ministry of Economy and Finance official explained, “we are reviewing how far to allow stablecoins in foreign exchange transactions and what to restrict.” The government targets legal revisions within 2026 or establishing clear policy direction by year-end. 

Infrastructure development includes expanding electronic wallet distribution and connecting the National Fiscal Integrated Information System with deposit token platforms.

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