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Begin New Search Political Geography North America Content Type Working Paper Publishing Institution Korea Economic Institute of America (KEI) Publication Year within 25 Years Publication Year within 3 Years

1. South Korea's Critical Moment in Digital Currency Policymaking: Between Regulating Cryptocurrencies and Launching a Central Bank Digital Currency (CBDC)

Author:
June Park
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Why is South Korea pilot-testing its Central Bank Digital Currency (CBDC), and what made it shift from non-issuance to consideration? This paper investigates the Bank of Korea (BOK)’s CBDC-related developments amid the geopolitical contest between the U.S. and China. It examines the Moon Jae-in administration’s defiance of decentralized finance (DeFi) and the BOK’s sudden shift from non-issuance to potential issuance, which led to expedited research, development, and pilot-testing of CBDCs. As in the case of the digital yuan, the BOK envisions a hybrid architecture for the digital won, wherein central banks and associated partner institutions are CBDC distributors, though they are distinguished by placing the digital won on distributed ledger technology rather than by centrally controlling it. However, South Korea’s previously rash decision to forego DeFi under an undemocratic process has deprived the country of the time and opportunity to develop new innovations as a leading country in the digital frontier. By sticking only to digitalizing centralized finance, the country now aims to be in “standby” mode for its CBDC launch if and when required, so as not to fall behind in digital financial architecture. This paper scrutinizes the South Korean government’s moves on crypto and CBDCs and argues that 1) the Moon administration has shown incapability in addressing DeFi amid the crypto boom and bust, and 2) the BOK’s shift from non-issuance to potential issuance of the digital won is driven by its interest to uphold central bank independence amid swaying geopolitics between the U.S. and China and an unpredictable upcoming presidential election in South Korea.
Topic:
Economics, Elections, Finance, Cryptocurrencies, and Digital Currency
Political Geography:
China, Asia, South Korea, North America, and United States of America

2. Adapting the U.S.-South Korea Alliance to an Indo-Pacific Regional Architecture: Challenges and Prospects

Author:
Andrew Yeo
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
This paper addresses the U.S.-South Korea alliance in the context of Asia’s evolving security architecture. At the crux of the issue is the Biden administration’s desire to uphold the rules-based international order by reinforcing the network of inter-Asia alliances and multilateral institutions, on one hand, and the Moon government’s relative reluctance to deepen and expand security ties linked to an Indo-Pacific strategy that counter-balances China, on the other hand. Leveraging the existing alliance relationship, the Biden administration should encourage Seoul to coordinate with other like-minded countries committed to sustaining a rules-based regional order while assisting Seoul in mitigating potential strategic vulnerabilities. Conversely, as a middle power, South Korea must not shy away from the region’s security architecture, but instead actively coordinate with other actors in shaping the region’s strategic environment. By working in concert with other countries in the Indo-Pacific, Seoul can reduce its geopolitical vulnerability while advancing its national and regional interests.
Topic:
International Relations, Security, Foreign Policy, Regional Cooperation, Geopolitics, and Alliance
Political Geography:
Asia, South Korea, North America, and United States of America

3. 2021 Report on American Attitudes towards the U.S.-ROK Alliance and North Korea Policy

Author:
Troy Stangarone and Juni Kim
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
KEI’s 2021 Report on American Attitudes on the U.S.-ROK Alliance and North Korea Policy summarizes results from a survey commissioned by KEI and conducted by YouGov on May 6th to May 10th, 2021 in advance of the U.S.-ROK summit on May 21st, 2021. The survey asked Americans their views on the U.S.-South Korea relationship, North Korea policy, and the U.S.’ role in the East Asian region.
Topic:
International Relations, Security, Foreign Policy, Economics, and Domestic Politics
Political Geography:
Asia, South Korea, North America, and United States of America