South Korea Stablecoin Framework Delayed Amid Bank Dispute
Background on South Korea Stablecoin Framework
South Korea is set to close the year without establishing a regulatory framework for locally issued stablecoins, according to a report by Korea JoongAng Daily. The delay results from ongoing disagreements between the Bank of Korea (BOK) and financial regulators regarding the involvement of banks in issuing stablecoins backed by the Korean won.
The BOK has insisted that a consortium of banks should hold at least 51% ownership in any stablecoin issuer seeking approval in South Korea. Officials argue that banks are uniquely qualified due to their experience with anti-money laundering protocols and close regulatory oversight. A BOK official was quoted as saying, “Banks … are best positioned to serve as majority shareholders in stablecoin issuers” (Cointelegraph).
In contrast, other regulators have shown willingness to permit broader participation from industry players outside the traditional banking sector. The BOK stresses that giving banks a leading role will help address risks related to financial and foreign exchange stability.
Lawmakers Consider Competing Stablecoin Bills
The South Korean National Assembly’s Political Affairs Committee is currently reviewing three separate bills concerning the issuance of stablecoins. The bills were submitted by both the ruling Democratic Party of Korea (DPK) and the opposition People Power Party (PPP) as of Monday, marking ongoing legislative debate on framework specifics.
Each of the proposed bills requires stablecoin issuers to hold a minimum capital of 5 billion won (approximately $3.4 million). However, the possibility of offering interest on stablecoin holdings remains a contentious issue. “While Kim Eun-hye’s bill allows interest payments, Kim Hyun-jung’s bill and Ahn Do-geol’s bill seek to prohibit them,” local media reported.
The Financial Services Commission previously intended to propose a regulatory framework for won-backed stablecoins in October, but policy disagreements have stalled progress.
For more on the evolution of cryptocurrencies and regulations in South Korea, visit our cryptocurrency analysis page.
Market Developments and Next Steps
Despite policy delays, major South Korean technology firms and financial institutions continue to advance stablecoin initiatives. Naver Financial, in partnership with Hashed and the Busan Digital Exchange, plans to launch a stablecoin wallet next month as part of ongoing business expansion efforts. This move coincides with Naver’s potential merger with Dunamu, operator of the popular Upbit exchange.
The BOK’s advocacy for a primary banking role in stablecoin issuance remains consistent. Deputy Governor Ryoo Sangdai underscored the need for banks to act as principal issuers during remarks made in June 2025. In July, eight leading banks—including KB Kookmin, Shinhan, and Woori—announced plans to jointly launch a won-pegged stablecoin by 2026.
As legislative and regulatory discussions continue, South Korea’s stablecoin framework is likely to remain unresolved until at least late 2025, postponing clarity for domestic cryptocurrency and fintech markets.
Sources
Reporting via Cointelegraph.
