South Korea is about to finalize the stablecoin bill, while the Central Bank (BOK) and the Financial Services Commission (FSC) compete for oversight authority. The FSC plans to present the bill before the end of 2025, competing with five other bills in the National Assembly. The BOK wants banks to issue stablecoins to ensure financial stability, while the FSC believes stablecoins fall under the management of virtual assets.
President Jae-Myung Lee is committed to making South Korea a digital asset hub, promoting the issuance of won-backed stablecoins. However, experts warn that stablecoins have low returns and need to be tied to real-world applications such as ETFs or cross-border payments.
BOK is concerned that the stablecoin pegged to the won could cause fluctuations in the exchange rate and capital flow. Currently, two stablecoins KRWX and KRW1 have been announced but are still under testing, waiting for a unified legal framework between BOK and FSC.
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