Experts Warn: "Korean Won Stablecoin Must Not Be Delayed Any Further"

"Delay in Second Phase Virtual Asset Legislation Over Issuance Framework"
Sanghoon Kim: "Bill to Be Reviewed After Local Elections"

As the institutionalization of stablecoins is accelerating overseas, there are growing calls for Korea to speed up discussions on introducing a won-based stablecoin.

On the morning of the 12th, participants pose at the seminar titled "2026 Global Stablecoin Trends and Opportunities for Korea's Digital Economy," held at the National Assembly in Yeouido, Seoul. Photo by Seungwook Park

Kim Taerim, managing partner at law firm Axis, stated at the seminar "2026 Global Stablecoin Trends and Opportunities for Korea's Digital Economy," held at the National Assembly in Yeouido, Seoul, on the morning of May 12, "It is worth considering whether concerns over monetary unity, monetary sovereignty, and financial stability truly justify delaying legislation related to a won-based stablecoin."

Kim further emphasized, "While Korea has been mired in internal legislative debates, other countries have already built their systems. With the U.S. GENIUS Act coming fully into effect in January next year, and the UK’s regulatory framework set to begin in October, now is the time to establish a regulatory framework for won-based stablecoins."

Kim Yonghwan, former chairman of NH NongHyup Financial Group, said, "Korea is already significantly delayed in introducing a won-based stablecoin, and considering that the Digital Asset Basic Act was excluded from the National Assembly Political Affairs Committee’s legislative subcommittee just today, related discussions seem to have been postponed until after the June 3 local elections." He warned, "If we do not actively pursue its introduction, Korea will fall behind in the global market."

In Korea, discussions on the second phase of virtual asset legislation (the Digital Asset Basic Act) are being delayed. The government maintains that, for the stable introduction of a won-based stablecoin, an issuance and distribution system led by banks (50% + 1 share) must be established. However, industry players oppose this, citing market contraction and operational inefficiencies. As a result, the passage of the bill within this year is also uncertain. Since February, there have been no legislative discussions in the political sphere regarding this issue.

A panel discussion is taking place at the '2026 Global Stablecoin Trends and Opportunities for Korea's Digital Economy' seminar held at the National Assembly in Yeouido, Seoul, on the morning of the 12th. Photo by Seungwook Park

The seminar also highlighted differing opinions between banks and the industry regarding the main issuers of won-based stablecoins. Choi Suhyeok, CEO of SymVerse Labs, said, "Even if innovation is achieved by introducing a bank-centric won-based stablecoin, it is the result of IT innovation. Considering the current size of Korea’s broad money (M2), there is little cause for concern about adopting won-based stablecoins, so we must establish ways to foster the industry with inclusiveness."

On the other hand, Byun Mikyung, deputy president of Kwangju Bank, stated, "Banks offer trust and stability, while fintechs provide technological innovation and user experience—each has its strengths. For consumer protection and anti-money laundering (AML), the initial phase should be bank-centric, but as the market and system mature, the scope should expand to include non-financial sectors."

There was also criticism that in-depth discussions on won-based stablecoins are not taking place due to delays in the second phase of virtual asset legislation. Yoo Jehun, former president of the Korea Deposit Insurance Corporation, remarked, "Currently, the conversation is limited to who should be the issuer of the won-based stablecoin. We must also urgently begin discussions on how to operate on-chain payment networks for cross-border stablecoin transactions, and how to integrate not only stablecoins but also real-world asset tokens (RWA) and security tokens (STO) into payment systems."

Meanwhile, Joshua Townsend, Global Head of Policy at the Digital Currency Governance Group (DCGG), commented, "Numerous virtual asset-related bills are being proposed worldwide. In Korea, it will be important to carefully assess market risks and design regulations that can enhance the practical technological benefits of virtual assets."

On this day, Assemblyman Kim Sanghoon of the People Power Party stated, "Several lawmakers, including Assemblyman Min Byungdeok of the Democratic Party, have reached a consensus to establish an industrial framework for won-based stablecoins based on the Digital Asset Basic Act. Immediately after the local elections, we will put the bill on the review agenda and proceed with deliberation without delay."

This content was produced with the assistance of AI translation services.