Korean government has recently started blaming the sharp fall of the KRW on stablecoins. The USD to KRW rate is pushing close to 1,500 and has stayed at levels similar to the 2008 financial crisis for a long time. As the KRW keeps dropping fast, the government says it will even look into USD stablecoins. But the size of USDT to KRW trading is tiny compared to the overall FX market. The reason they want to bring it up as a factor behind the rising exchange rate is simple. It lets them shift the blame for the falling currency to a flashy topic like USD stablecoins. If that is not the reason, then the government is basically admitting that the KRW is weaker than a USD stablecoin, not the USD itself (totally nonsense). The actual reason the exchange rate is climbing is straightforward. Korea’s recent M2 money supply growth is larger than other currencies. Crypto still has a terrible reputation in Korea. I really hope that changes soon.