Overview

• Two rival bills introduced by DP Rep. Ahn Do-geol and PPP Rep. Kim Eun-hye outline competing frameworks for won-pegged stablecoins now pending in the National Assembly.
• The Democratic Party’s proposal prohibits any interest payments on stablecoins and requires issuers to secure regulatory pre-approval, maintain at least 5 billion won in capital and establish dedicated IT infrastructure.
• The opposition People Power Party’s legislation omits an interest ban to encourage yield opportunities and focuses on licensing and disclosure requirements for issuers.
• Both bills mandate full 100 percent reserve backing for stablecoins and grant emergency inspection authority to the Bank of Korea and the Financial Services Commission.
• Economists warn that issuing a globally circulating won-pegged stablecoin could undermine Korea’s foreign exchange management without first internationalizing the currency.