[Economy Pulse] No Legal Way to Receive Export Proceeds in Stablecoins

South Korea's exports are poised to surpass $1 trillion for the first time this year. The International Monetary Fund projects that the country's annual current account surplus will rank second in the world, behind China. Its surplus in the second quarter exceeded the combined surpluses of Germany and Japan. The achievement has been driven by a sharp rise in memory chip prices and a semiconductor boom. Calls are already growing for South Korea to diversify its export offerings, including services exports, in preparation for the end of the boom, and to respond to trade barriers in the United States and other advanced economies.

There is another concern that receives less attention but has been voiced in export circles for years: What should companies do when overseas buyers want to pay in dollar-denominated stablecoins such as USDC and USDT?

The U.S. GENIUS Act will take effect next January. Dollar stablecoins will then begin circulating worldwide in earnest under a U.S. federal oversight framework. Overseas buyers will not wait for South Korea to complete its legislative process. If companies refuse these payment requests, orders could go to overseas competitors. The problem is that, once a company in South Korea receives dollar stablecoins, there is no readily available legal channel to convert them into won and deposit the proceeds into its corporate bank account.

In February last year, the Financial Services Commission announced a roadmap to gradually allow corporations to open accounts at digital asset exchanges, starting with nonprofit organizations. However, there has been no update on exchange accounts for listed companies, which were slated for the second half of last year. South Korean companies have no way to receive export proceeds in dollar stablecoins and convert them into won.

In August last year, the CEO and employees of a company that received export proceeds in stablecoins were referred to prosecutors on suspicion of violating the Act on Reporting and Using Specified Financial Transaction Information. According to media reports, they sought out currency exchangers through Telegram and other channels to cash out the stablecoins and convert them into won. Police viewed this as selling coins to an unspecified number of people without registering as a business operator. Of course, the legality of each individual case is a separate question. Even so, that does not absolve the government of its obligation to provide an answer. Where, and through what procedures, are legitimate export companies supposed to receive their money?

Other countries have already provided an answer in the form of services. Shopify and Stripe announced in June last year that they would introduce USDC payments for sellers in 34 countries. Even when customers pay in stablecoins, sellers receive settlement in local currency in their bank accounts. They are already commercializing new innovations and turning them into a major opportunity for sellers around the world.

Major South Korean companies are also seeking solutions overseas. Samsung Electronics announced that it would launch a USDC remittance feature for Galaxy users in the United States at the end of this month. Hyundai Motor and Hyundai Card completed a pilot transfer of $20,000 in USDT between their U.S. and Mexican subsidiaries. Tether and Avalanche also participated, and according to Hyundai Card, the transfer and verification took an average of seven minutes. Global conglomerates have the resources to conduct multiple experiments. But what are the many small and medium-sized exporters to do when they have to worry every day about payroll and office rent?

Since late 2024, there have been several reports of overseas wholesalers paying in Tether at Dongdaemun's clothing market. Major commercial banks and other financial institutions have repeatedly conducted technical tests of overseas remittances using stablecoins for years. Successful experiments have accumulated, yet companies are still asking how they can legally receive export proceeds.

Of course, the government may have many concerns. For example, virtual assets and corporate accounts fall under the Financial Services Commission, foreign exchange transactions under the Ministry of Economy and Finance and the Bank of Korea, and taxation and zero-rating under the National Tax Service. Coordination among ministries on complex issues may not be easy. But while each ministry continues its cautious review, exporters on the front lines are exposed to the risk of becoming lawbreakers.

The Digital Asset Basic Act, whose passage through the National Assembly was promised last year, has yet to be submitted to the legislature even as a government bill. According to several experts, it is not expected to take effect until 2028 at the earliest. What, then, will be done about the desperate appeals from export companies during the year-plus legal vacuum?

A cross-ministerial joint regulatory sandbox should be established to allow actual export proceeds to flow. The participating companies and transaction limits should be set, and the exemptions and reporting procedures required for receiving funds under a corporate name, converting them, and depositing them in a bank should be finalized together, starting with transactions for which export documentation has been verified. Banks and qualified service providers should process the transactions, while the authorities monitor for money laundering and sanctions violations. Foreign exchange reporting, accounting treatment, and zero-rating documentation for each transaction type should all be verified within a single transaction. Field trials should be used to bring new innovations safely into the regulatory framework.

In the 1970s and 1980s, when export industries such as semiconductors, shipbuilding, and automobiles were taking shape, the government and financial sector opened paths for companies with funding and guarantees. Fifty years later, what will the government and financial sector prepare for the next 50 years?

The government says it will support innovation and encourage everyone to start businesses. That is certainly necessary. But small and medium-sized exporters on the ground are urgently asking a much more practical question: How can we legally receive export proceeds?

Seo Byeongyun, Co-CEO of DSRV Labs

This content was produced with the assistance of AI translation services.