South Korea Stablecoin Framework Stalls as Regulators Split over Banks’ Role

Why It Matters

The outcome will shape South Korea's crypto regulatory landscape, determining whether traditional banks or tech companies dominate the stablecoin market and influencing the country's financial stability and innovation trajectory.

Summary

South Korean regulators remain deadlocked over the role of banks in issuing won‑backed stablecoins, pushing the expected 2025 framework into uncertainty. The Bank of Korea insists that banks must hold at least a 51% stake in any stablecoin issuer to mitigate financial and FX risks, while the Financial Services Commission and lawmakers favor broader industry participation. Three competing bills are under review, all requiring a minimum capital of 5 billion won but differing on whether issuers can pay interest to holders. Meanwhile, tech firms like Naver are advancing their own stablecoin initiatives, and a consortium of eight major banks plans to launch a won‑pegged stablecoin in 2026.