South Korea Pressures Regulators to Speed Up Long-Delayed Stablecoin Framework
What Are Lawmakers Demanding Ahead of the December Deadline?
South Korean lawmakers are pushing financial regulators to finish a draft stablecoin bill before a Dec. 10 deadline, as internal disagreements over how much control banks should have continue to block progress. According to the Maeil Business Newspaper, the ruling party sent a “last-minute notice” urging the government to produce the draft before the cutoff.
Kang Joon-hyun of the Democratic Party warned that if the draft does not arrive on time, the ruling party will move ahead through the political affairs committee. “If the government bill does not come over within this deadline, we will take a drive through legislation by the secretary of the political affairs committee,” he said. If the draft is submitted, he expects discussion to begin at the extraordinary National Assembly session scheduled for January 2026.
The Financial Services Commission (FSC) acknowledged that stablecoin rules were reviewed during a ruling party–government consultation on Monday but said work remains ongoing. The regulator said “no decision had been finalized regarding the formation of a consortium for issuing a KRW-denominated stablecoin,” adding that both sides agreed to prepare the bill as rapidly as possible.
Investor Takeaway
Why Is the Bank-Led Issuer Model Still Unresolved?
Despite speculation last month, the FSC said “no concrete decision has been made on matters such as allowing a consortium in which banks hold 51% or more of equity.” The statement reflects a broader deadlock between the FSC, the (BOK), and other agencies over the structure of the proposed stablecoin regime.
The BOK has argued that banks should own a majority stake in any issuer of a won-pegged stablecoin. Its position is based on banks’ existing oversight and their track record handling obligations. Regulators on the financial policy side have pushed back, arguing that a majority-bank model could restrict competition and stall industry development.
These disagreements have already sluggished the regulatory timeline. Reports at the end of November indicated that South Korea would likely close 2025 without a clear stablecoin framework, even as other jurisdictions move ahead with licensing regimes and issuance guidelines.
Is Majority Bank Ownership the Right Model?
A BOK official previously said banks “are already under regulatory oversight and have extensive experience handling protocols,” making them suitable candidates to lead a stablecoin issuance structure. But industry voices say the model may be too rigid.
In late October, Sangmin Seo, chair of the , questioned the logic behind giving banks a 51% requirement. He said the central bank’s argument “viewms to lack a logical foundation,” adding that the better approach would be to create clear eligibility rules for issuers rather than handing control automatically to banks. He also said, “It would be even more valuable if the Bank of Korea could provide guidelines on how these risks can be mitigated and what qualifications are required for an issuer to be regarded as trustworthy.”
The issue resurfaced during Monday’s discussions. An official from Kang’s office said the ruling party is still searching for middle ground that accounts for the BOK’s monetary policy concerns without blocking industry development. The official said the party was “looking for a point of contact, considering both the stability of the BOK’s monetary policy and the industrial innovation emphasized by the [FSC].”
Investor Takeaway
What Comes Next for South Korea’s Stablecoin Law?
The path forward remains narrow. Lawmakers want the government to deliver the draft before Dec. 10, but the FSC and BOK still disagree on the underlying structure. If the draft arrives on time, it will enter committee review in January. If it does not, lawmakers may try to push their own version, though that route tends to prolong debate.
South Korea’s regulators have spent years preparing crypto legislation, from AML rules to platform oversight. The stablecoin law was expected to be the next step, especially as local firms explore KRW-pegged tokens and global players ramp up stablecoin settlement pilots. For now, the country is caught between two priorities: the central bank’s caution and the FSC’s push for an open market.
Until the ownership issue is settled, remain in a holding pattern—and the country risks falling behind peers that already allow regulated fiat-backed tokens.
