Korea in final phase of introducing stablecoin: FSC chairman

Financial Services Commission (FSC) Chairman Lee Eog-weon answers questions from lawmakers during an audit of the FSC by the National Policy Committee at the National Assembly in Yeouido, Seoul, Monday. Yonhap

Korea is in the final stages of preparing legislation to introduce and regulate stablecoins, with the bill set to be submitted to the National Assembly before the end of 2025, Financial Services Commission (FSC) Chairman Lee Eog-weon said Monday.

During the National Assembly’s annual audit, Lee spoke about stablecoins pegged to the Korean won as Asia’s fourth-largest economy lags behind other countries in legalizing such digital assets.

“A bill regulating stablecoins is in its final coordination phase with the relevant ministries and is planned to be submitted to the assembly within this year,” Lee said in response to Rep. Yoo Dong-soo of the Democratic Party of Korea (DPK).

“We are meticulously reviewing each detail in collaboration with the ministries concerned,” the FSC chief added, noting that the regulatory framework is still in the early stages of institutional design and that robust safeguards are crucial.

FSC Vice Chairman Kwon Dae-young, who joined Lee at the session, agreed when Yoo proposed that a consortium involving both banks and tech firms should be authorized to issue stablecoins.

Kwon also said the FSC “will proceed accordingly” regarding Yoo’s suggestion that stablecoin issuers be required to hold minimum capital of 5 billion won ($3.52 million).

According to an FSC report submitted to the National Policy Committee, key elements of the proposed stablecoin framework include the introduction of an issuer licensing system, reserve asset management regulations, guarantees for user redemption rights and alignment with international regulatory standards.

On the issue of reserve assets in particular, the FSC said it plans to require stablecoin issuers to hold more than 100 percent of reserves in high-liquidity assets such as bank deposits and government bonds.