South Korea Stablecoin Regulation Stalled by Bank Role Disagreements

Key Takeaways:

• South Korean lawmakers push for stablecoin bill by Dec. 10 deadline.
• Disagreements over the role of banks stall progress.
• No final decision on bank-led model.
• Experts advocate for clear issuer rules instead of bank dominance.

Pressure is mounting on South Korean financial regulators to deliver a draft stablecoin bill by a deadline set for later this month, as disagreements over the role of banks in the sector continue to impede progress. According to a report by the Maeil Business Newspaper, South Korea’s ruling party issued a “last-minute notice” to financial regulators, demanding the submission of a stablecoin regulatory framework draft by December 10.

Kang Joon-hyun, a lawmaker of the Democratic Party, stated, “If the government bill doesn't arrive within this deadline, we will proceed with legislation through the secretary of the political affairs committee.” If the bill is delivered on time, it is expected to be discussed at the extraordinary session of the National Assembly in January 2026.

The Financial Services Commission (FSC) subsequently issued a statement clarifying that “no decision has been finalized regarding the formation of a consortium for issuing a KRW-denominated stablecoin.” The regulator confirmed that stablecoin regulation was discussed during a ruling party–government consultation, and both sides agreed to expedite the preparation of the government bill.

No Agreement Yet on Bank-Led Model

Despite earlier reports, the FSC clarified that “no concrete decision has been made on matters such as allowing a consortium in which banks hold 51% or more of equity.” This announcement follows reports from late November indicating that South Korea is likely to conclude the year without a framework for locally issued stablecoins, amid ongoing debates about the appropriate role of banks in stablecoin issuance.

The Bank of Korea (BOK) and other financial regulators have reportedly clashed over the extent of bank involvement in issuing Korean won-pegged stablecoins. The central bank has suggested that banks should own at least 51% of any stablecoin issuer seeking regulatory approval in the country, while regulators are pushing for a more diverse ecosystem.

Why a Majority Bank Ownership?

A BOK official previously stated that banks “are already under regulatory oversight and possess significant experience in handling anti-money laundering protocols,” making them suitable candidates for stablecoin issuers. However, Sangmin Seo, the chair of the Kaia DLT Foundation, argued that the central bank’s justification for bank leadership “seems to lack a logical foundation,” advocating instead for the establishment of clear rules for all issuers.

He added, “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.”

This issue was revisited during the recent meeting, with an official from Kang’s office noting that the ruling party is “seeking a point of convergence, considering both the stability of the BOK’s monetary policy and the industrial innovation emphasized by the [FSC].”