Daniel Walker
South Korea’s ruling Democratic Party has delivered a firm warning to financial regulators, insisting that stablecoin legislation must be finalized without further delay.
According to a report from Maeil Economic News, the party has instructed the Financial Services Commission (FSC) to submit an official regulatory framework for the domestic stablecoin sector by Dec. 10, calling it their final request.
Lawmaker Kang Jun-hyeon, who serves as secretary of the National Assembly’s Financial Services Committee, stated that if the government fails to meet the deadline, he will personally move the bill forward through a legislator-initiated proposal.
Kang noted that the goal is to introduce the bill during the current parliamentary session and push it through for official passage by January.
On Monday, committee members from the ruling party held a closed-door meeting with the FSC to advance discussions. Kang revealed that authorities are evaluating a model in which the Bank of Korea, the FSC, and commercial banks jointly form a consortium responsible for issuing stablecoins.
Consortium Model Gains Traction, but No Final Deal
Participants also reviewed structural details, including the potential requirement that banks collectively hold more than 50% ownership in the proposed consortium.
However, the FSC later clarified in a public notice that no definitive decisions were reached, indicating that negotiations remain ongoing.
Push for a Domestic Stablecoin Accelerates
Interest in a local stablecoin market has grown rapidly since the election of President Lee Jae Myung, who identified the creation of a Korean won-pegged stablecoin as a key initiative. His administration aims to strengthen South Korea’s monetary sovereignty, counterbalancing the overwhelming dominance of U.S. dollar-based stablecoins.
Despite multiple parliamentary proposals in recent years, regulatory progress has stalled. The bank-led issuance model currently under review reflects the Bank of Korea’s long-standing position that stablecoin creation should be handled exclusively by licensed and supervised financial institutions.
