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South Korea is set to wrap up the year without a plan for locally issued stablecoins. This comes as tensions brew over how much involvement banks should have in stablecoin issuance.
The Bank of Korea (BOK), along with other financial regulators, has been debating the role of banks in launching Korean won-backed stablecoins, causing delays in a framework that’s expected to roll out in late 2025, as reported by the Korea JoongAng Daily on Tuesday.
The BOK suggests that a group of banks should hold at least 51% of any stablecoin issuer seeking regulatory approval in South Korea. Meanwhile, regulators seem more interested in allowing a mix of players from various industries to participate.
“Banks already have the regulatory oversight and experience with anti-money laundering procedures, making them the best fit as majority shareholders in stablecoin issuers,” a BOK official stated.
BOK Advocates for Banks’ Leading Role to Mitigate Risks
According to the central bank, if banks take the lead in stablecoin issuance, it could help lessen risks to financial and foreign exchange stability.
The BOK has cautioned that allowing non-bank companies to spearhead stablecoin issuances might violate existing laws that prevent industrial companies from owning financial institutions. Given that stablecoins act like deposit-taking instruments by collecting user funds, it’s a big concern.
“Permitting non-bank companies to issue stablecoins is much like allowing them to engage in narrow banking—where they would issue currency and also provide payment services,” the BOK added in a recent stablecoin study, stressing that tech firms could create monopoly risks.
Three Stablecoin Bills Under Scrutiny
The Financial Services Commission (FSC) was expected to publish a regulatory framework for won-backed stablecoins as part of a government bill in October.
According to a report from the local publication Bloomingbit, the National Assembly’s Political Affairs Committee is now analyzing three stablecoin issuance bills presented by lawmakers from both the ruling and opposition parties.
These proposed laws include two from the ruling Democratic Party of Korea (DPK) and one from the opposition People Power Party (PPP).
While all three bills suggest a minimum capital requirement of 5 billion won (about $3.4 million) for issuers, there are still heated discussions about whether stablecoin issuers should be allowed to pay interest on their holdings.
“Kim Eun-hye’s bill permits interest payments, but Kim Hyun-jung’s and Ahn Do-geol’s bills aim to prohibit them,” the report notes.
As South Korean lawmakers continue to debate the stablecoin framework, local tech giants like Naver are picking up the pace on their stablecoin projects, particularly in light of a potential merger with Dunamu, which operates the major exchange Upbit.
Related: Upbit operator Dunamu posts $165M in profit in Q3, up over 300% YoY
According to local sources, Naver Financial plans to roll out a stablecoin wallet next month in partnership with Hashed and the Busan Digital Exchange.
The BOK’s support for banks leading the charge in stablecoin issuance syncs with its earlier talks, after Deputy Governor Ryoo Sangdai advocated for banks to be the main issuers of stablecoins back in June 2025.
In July, eight major South Korean banks, including KB Kookmin, Shinhan, and Woori, reportedly joined forces to launch a won-pegged stablecoin in 2026.
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