South Korea’s ruling Democratic Party has ramped up pressure on financial authorities, issuing an ultimatum to the Financial Services Commission (FSC) to accelerate legislation governing the domestic stablecoin market.
According to a Monday report from Maeil Economic News, the ruling party has set a final deadline of December 10 for the FSC to submit a comprehensive government proposal on stablecoin regulation.
Kang Jun-hyeon, a ruling party lawmaker and secretary on the National Assembly’s Financial Services Committee, confirmed the aggressive timeline. “If the government plan doesn’t come by this deadline, I will drive it forward through a legislator-initiated bill at the committee secretary level,” Kang reportedly stated.
The party’s goal is to introduce and pass the stablecoin bill during the current regular session of the National Assembly, targeting a January passage.
The urgency follows President Lee Jae Myung’s initiative to develop a Korean won-stablecoin market, which aims to protect the nation’s “monetary sovereignty.”
During a closed-door meeting on Monday between ruling party committee members and the FSC, discussions centered on a model that would allow the Bank of Korea, the FSC, and the banking sector to form a consortium for stablecoin issuance. This model reflects the central bank’s firm stance that only regulated banks should be allowed to issue stablecoins.
Talks advanced to specific requirements, including mandating that banks collectively hold over 50% of the shares in the consortium. However, the FSC later noted in a separate release that no definite agreement was reached during the meeting. Legislative efforts on this key initiative have yet to make meaningful progress, prompting the ruling party’s latest, forceful push.
