Frustration Mounts as South Korea’s Stablecoin Bills Grind to a Halt

Despite the initial excitement surrounding the country's stablecoin new legislature has started to turn to frustration and anger, as the lawmaker's deliberations on the legislature has seem to come to a deadlock.

According to Busan Ilbo, the core of the gridlock is a fundamental question: who should be allowed to issue stablecoins?

While BOK and conservative policymakers want issuance limited to domestic banks, ensuring tight regulatory control, fintech firms and IT giants argue that excluding non-bank players will stifle innovation.

This question has been a very sensitive topic in South Korea, with the country's business space being dominated by large conglomerate known as Chaebol.

In recent years, internet giants such as Naver and Kakao have also moved into the space. The central bank fears that allowing big tech to mint KRW-backed tokens could lead to the rise of “private currencies,” undermining its authority over monetary policy.

Differing Views When It Comes To Equity Requirements

Equity requirements also differ sharply across the four different bills. The most liberal proposal would open the door to startups with just ₩500 million in equity capital, setting a very low bar, potentially allowing essentially any startups to issue KRW-pegged stablecoins.

However, the most conservative draft demands ₩5 billion, effectively limiting issuance to larger financial institutions.

The legislative review is split between two key National Assembly committees—Political Affairs and Strategy & Finance—creating further delays. A senior blockchain industry official, speaking anonymously, warned:

“This delay is very frustrating. Regulators need to decide one way or the other. Other countries are moving ahead, but we’re stuck in limbo.”

Falling Behind Global Peers

South Korea’s lack of progress stands in stark contrast to developments abroad. Japan’s FSA is close to greenlighting JYPC’s yen-pegged stablecoin, while Germany and China have already advanced frameworks.

Observers believe Berlin, Tokyo, and Beijing are all reacting to the U.S. headwinds after President Trump signed the GENIUS Act in July, setting strict new rules for stablecoin issuers.

Adding to the pressure, Circle CEO Heath Tarbert recently met with BOK Governor Rhee Chang-yong and executives from major Korean banks, underscoring how global stablecoin players are already shaping the conversation.

For now, South Korea’s blockchain ecosystem remains in a holding pattern—caught between regulatory caution and industry urgency, with the future of KRW-backed stablecoins hanging in the balance.