South Korea’s central bank has renewed its call for a legal framework for won-backed stablecoins, with Bank of Korea Governor Shin Hyun-song urging lawmakers to move quickly while insisting that banks should play the leading role in issuing the digital assets.
Speaking before the National Assembly’s Finance, Economy and Planning Committee on July 9, Shin said there had been “no change” in his position that South Korea should introduce a stablecoin system as soon as possible. He added that stablecoins and deposit tokens should coexist, with each serving different purposes within the financial system.
Bank Of Korea(BOK) Governor Shin Hyun-song reaffirmed his push for rapid KRW stablecoin institutionalization, responding to a lawmaker’s question about whether his position had shifted. It hasn’t. He framed stablecoins and deposit tokens as complementary rather than competing,… pic.twitter.com/TKJkUZGaed
— Tony Chung (@jayc_BM) July 9, 2026
The comments come as the National Assembly considers multiple bills that would form the country’s second phase of digital asset legislation. The proposals seek to establish rules for stablecoin issuance, reserve management, and oversight.
Bank-led model remains the main point of disagreement
The Bank of Korea also repeated its preference for a banking consortium holding more than 50% ownership to receive priority in issuing won-backed stablecoins. It argued that such a structure would reduce risks to monetary policy, financial stability, and foreign exchange management.
The central bank also proposed creating a statutory policy body involving the Bank of Korea, the Financial Services Commission, and the Ministry of Economy and Finance to jointly oversee issuance approvals, reserve requirements, and risk management.
While Democratic Party lawmaker Ahn Do-geol backed faster legislation, disagreements remain over who should control stablecoin issuance.
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Why is South Korea debating who should issue stablecoins?
Unlike jurisdictions that have already licensed private companies to issue stablecoins, South Korea is still deciding whether banks should receive priority or whether fintech firms and crypto companies should compete on equal terms.
The discussion builds on earlier moves as South Korea’s largest financial holding companies are moving to enter the stablecoin sector, forming strategic alliances with major technology firms to secure a footing in the growing digital payments landscape
That debate could shape how competitive the market becomes. Supporters of a bank-led model argue it offers stronger consumer protection because banks already operate under strict capital, liquidity, and compliance rules. Critics counter that limiting issuance to bank-controlled groups could reduce innovation and make it harder for new entrants to compete.
Democratic Party lawmaker Min Byung-deok has publicly opposed the proposal, arguing that banks already have deposit tokens and should not dominate the stablecoin market as well. The discussions are expected to continue as lawmakers work toward passing the Digital Asset Framework Act.
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