South Korean Stablecoin Landscape: Bill In October, NaverPay And Industry Increase Interest

The FSC (Financial Services Commission) in South Korea has revealed its plans to release a regulatory framework for stablecoins later this year in October, according to MoneyToday. After weeks of deliberation and consultation with institutions and enterprises, it is understood that the piece of legislation will focus on clear guidance on the issuance of won-based stablecoins and relevant aspects such as managing responsible collateral and risk controls.

This builds on the regions positive digital asset policy development since 2024, when the Virtual Asset User Protection Act began its consultations, as well as a renewed political mandate from President Lee Jae-Myung. Reflecting on the progress from a number of political debates held over the summer weeks between members on the future of a won-backed stablecoin, Park Min-Gyu (Democratic Party), expressed:

"We recently received a report from the Financial Services Commission on the direction of the stablecoin. The government plan is scheduled to be submitted (to the National Assembly) around October" [translated].

After other organizations raced to apply for won stablecoin trademarks for their own proprietary stablecoin-related products and services, Naver Pay, a mobile payment service provider with around 30 million users, has joined the conversation on the stablecoin agenda after a cooperation with Upbit, according to Bloomingbit.

Director of Innovation Lee Byung-Kyu expressed that:

"Naver Pay cannot pursue (the stablecoin business) alone. The stablecoin business is an area that is difficult for a single company to pursue exclusively. For stable issuance and operation, close connection and collaboration with various financial and technology companies - such as issuers, banks, and blockchain firms - are essential."

The number of companies based in South Korea interested in the development, issuance, and reserve management of local stablecoins continues to rise, but most, as observed in other regions where local innovation was ahead of legislative clarity, are still waiting on official rules to explore such activity for its users.