Exclusive: Ruling Party Aims to Pass Korean Won Stablecoin Bill by March

[Financial News] The Democratic Party of Korea (DPK) has set March next year as the target date for passing the final version of the Korean won stablecoin bill and is launching a full-scale legislative drive. For the remainder of this year, which is just over two weeks, the DPK plans to focus on narrowing differences with the financial authorities. The party intends to introduce the bill in January, undergo a deliberation period and systematic review, and pass it in the March plenary session of the National Assembly of the Republic of Korea before the local election season begins.
According to a DPK member of the National Policy Committee on the 15th, behind-the-scenes discussions are ongoing with the goal of passing the final Korean won stablecoin bill at the plenary session in March next year. The lawmaker noted, "There is a need to clarify some contentious points," and added, "We cannot bypass the National Assembly of the Republic of Korea procedures. The plan is to introduce the bill in January, allow for the deliberation period, and then proceed with the review according to that timeline."
Under the new legislation, except in urgent or special cases, a 20-day deliberation period is required before a bill can be submitted to the full session of the relevant standing committee. Therefore, even if the final Korean won stablecoin bill is introduced in January, it is interpreted that it can only be submitted and voted on at the National Policy Committee's plenary session at the end of January or in February.
Furthermore, even if the bill passes the National Policy Committee, it must also be approved by the Legislation and Judiciary Committee before it can be submitted to the plenary session of the National Assembly of the Republic of Korea. This process is one of the reasons for the delay in legislating the Korean won stablecoin bill.
Nevertheless, the DPK maintains that the final Korean won stablecoin bill will not be delayed beyond March. This is because, once the local election campaign begins, there is a strong possibility that legislative review at the National Assembly of the Republic of Korea will effectively come to a halt.
A DPK lawmaker stated, "If March passes, there will be no opportunity for review due to the local elections," adding, "We are determined to move quickly and achieve our goal."
Meanwhile, the fundamental reason for the delay in passing the final Korean won stablecoin bill, which was initially targeted for passage within this year, lies elsewhere. There is considerable opposition from the financial authorities.
In particular, there remain significant differences between the party and the financial authorities regarding the issuer of the stablecoin and the policy council responsible for issuance and distribution.
Regarding the issuer, the DPK believes that allowing private entities to issue Korean won stablecoins will foster a competitive market and drive innovation. In contrast, the Bank of Korea (BOK) and the Financial Services Commission (FSC) argue that a stable market should be established around traditional banks.
DPK members of the National Policy Committee have expressed clear opposition to the BOK's proposal to introduce a policy council requiring unanimous consent for issuance and distribution, citing concerns that it could delay these processes.
A DPK official commented, "Many lawmakers are frustrated," adding, "Lawmakers have asked the Financial Services Commission and other financial authorities to finalize the details by this week." If the DPK receives the final proposal from the FSC this week, the party is expected to engage in further negotiations within the year.
gowell@fnnews.com Kim Hyung-gu Reporter