Overview

• Both Democratic Party and People Power Party proposals mandate 100 percent reserve backing and grant emergency intervention powers to regulators as they enter parliamentary review
• The Democratic Party bill requires Financial Services Commission approval, a minimum 5 billion won capital base, robust IT infrastructure and dedicated personnel while banning interest payments
• It stipulates priority user reimbursement from reserve assets within three business days in the event of issuer bankruptcy and prohibits reserve seizure or collateral use
• The People Power Party’s competing legislation retains the reserve and oversight measures but omits any ban on interest to support yield-earning stablecoins
• Lawmakers say the bills advance President Lee Jae-myung’s monetary sovereignty pledge and align South Korea with global trends in formalizing stablecoin regulation