Circle seeks a foothold in Korea, but Korean won stablecoin law still faces resistance [Crypto Briefing]

According to The Financial News, Circle, the issuer of the U.S. dollar stablecoin USD Coin (USDC), is seeking to enter the Korean market. While the arrival of foreign stablecoins in Korea is coming into view, the introduction of a Korean won stablecoin is still facing difficulties due to stalled legislation, prompting growing concern.
According to the virtual asset industry on the 13th, Circle founder and CEO Jeremy Allaire visited Korea that day. Allaire is scheduled to meet with virtual asset exchanges such as Upbit, Bithumb, and Coinone, as well as financial institutions including KB, Hana Bank, and Shinhan Financial Group.
There is particular speculation that Circle could sign memorandums of understanding (MOUs) with Upbit and Bithumb. Because Korean won must pass through domestic virtual asset exchanges before it can be converted into stablecoins such as those issued by Circle, the company is expected to use such MOUs to increase the circulation of its coins in Korea.
With financial institutions, Circle is expected to explore ways to use U.S. dollar stablecoins for actual payments. Most major Korean financial firms have already formed partnerships with Circle. KB Financial Group, for example, has conducted a proof of concept (PoC) using Circle’s stablecoin issuance and management platform, Circle Mint. Hana Bank also signed a comprehensive MOU with Circle in May last year.
Circle has recently been putting significant effort into entering the Korean market. In August last year, President Heath Tarbert also visited Korea to meet with players in the virtual asset industry and the financial sector to discuss potential cooperation.
Circle’s focus on Korea is widely seen as an attempt to secure an early lead in a market where the stablecoin ecosystem has yet to fully develop. Circle holds roughly 25–27% of the global stablecoin market. It ranks second after Tether (USDT), which has a market share of about 65–67%. Korea has not yet fully embraced stablecoins, but its strong technological base gives it significant potential, making it an attractive market to capture early. While some in the domestic industry view expanded collaboration with major global players positively, there is also considerable concern. If U.S. dollar stablecoins enter the market before a legal framework for a Korean won stablecoin is in place, it could undermine the country’s monetary sovereignty.
At a stablecoin policy forum held at the National Assembly of the Republic of Korea on the 7th, Jongseop Lee, a professor at Seoul National University (SNU), stated, "Stablecoins are not just money; they are the liquidity infrastructure that drives the tokenization market. Depending on who controls the payment and settlement infrastructure, monetary sovereignty can be affected," adding, "The key competitive factor is which currency becomes the standard."
In Korea, legislation has been delayed as regulators and industry players remain far apart on who should be allowed to issue a Korean won stablecoin. Some in the industry argue that, rather than getting bogged down in the most contentious issues, policymakers should first prepare the detailed elements on which agreement is possible and accelerate the launch of a Korean won stablecoin.
An official from the virtual asset industry noted, "U.S. dollar stablecoins are already rapidly dominating the global market, while in Korea we have been debating the issue for more than a year," and stressed, "Discussions on system design, regulation, and promotion measures need to proceed in parallel." Meanwhile, the National Policy Committee of the National Assembly of the Republic of Korea is scheduled to discuss legislation on the General Act on Digital Assets at a meeting of the Subcommittee on Bill Review No. 1 on the 15th.

yimsh0214@fnnews.com Lim Sang-hyuk Reporter