South Korea is on track to conclude the year without a definitive framework for stablecoins, attributed to continuing disputes regarding the involvement of banks in their issuance.
The Bank of Korea (BOK) and other financial regulatory bodies are at odds over how prominently banks should play a part in the issuance of Korean won-backed stablecoins, leading to postponements of the framework that was initially anticipated by the end of 2025, as reported by the Korea JoongAng Daily on Tuesday.
The Bank of Korea asserts that a consortium of banks needs to own at least 51% of any stablecoin issuer to gain regulatory approval in South Korea. Meanwhile, other regulators are more amenable to the participation of various industry players.
“Banks, which are already under regulatory oversight and have extensive experience handling anti-money laundering protocols, are best positioned to serve as majority shareholders in stablecoin issuers,” a BOK official reportedly commented.
BOK Advocates for Banks’ Leading Role to Mitigate Stablecoin Risks
The central bank stated that entrusting banks predominance in stablecoin issuance could help alleviate potential risks to both financial and foreign exchange stability. It also cautioned that allowing non-bank entities to spearhead stablecoin issuance might undermine existing regulations prohibiting industrial firms from owning financial institutions, as stablecoins operate akin to deposit-taking instruments by gathering funds from users.
Financial Supervisory Service Governor Lee Chan-jin, Bank of Korea Governor Rhee Chang-yong, Deputy Prime Minister Koo Yun-cheol and Financial Services Commission Chairman Lee Eog-weon (from left to right). Source: Korea JoongAng Daily
“Allowing non-bank companies to issue stablecoins is akin to granting them the rights of narrow banking — issuing currency while providing payment services,” the BOK indicated in a recent study on stablecoins, warning that tech firms issuing stablecoins could lead to monopolistic practices.
Review of Three Stablecoin Bills Underway
The Financial Services Commission (FSC) was expected to release a regulatory structure for won-backed stablecoins within a government bill this October. As reported by Bloomingbit, the National Assembly’s Political Affairs Committee is now considering three related bills submitted by lawmakers from both the ruling and opposition parties.
The proposed bills include two initiated by the ruling Democratic Party of Korea (DPK) and one from the opposition People Power Party (PPP). All three insist on a minimum capital requirement of 5 billion won (approximately $3.4 million) for issuers, while contentious issues include whether stablecoin issuers should be permitted to offer interest on funds held.
“While Kim Eun-hye’s bill allows interest payments, Kim Hyun-jung’s bill and Ahn Do-geol’s bill aim to prohibit them,” the report revealed.
As the stalemate continues in the legislative process regarding a stablecoin framework, local technology leaders like Naver are hastening their stablecoin initiatives, especially with a potential merger with Dunamu, operator of the major exchange Upbit.
According to regional reports, Naver Financial is poised to introduce a stablecoin wallet next month in collaboration with Hashed and the Busan Digital Exchange.
The BOK’s push for banks to take a leading role in stablecoin issuance coincides with its earlier position after Deputy Governor Ryoo Sangdai advocated for banks to be the primary issuers of stablecoins in June 2025. Recently, eight major banks in South Korea, including KB Kookmin, Shinhan, and Woori, have come together to launch a won-pegged stablecoin set for 2026.
