South Korea to Introduce Stablecoin Regulation Bill This October

South Korea is moving forward with plans to introduce legislation that could lay the groundwork for regulating a stablecoin tied to the won, signaling one of its boldest steps yet into the digital asset space.

Local media reports indicate that the Financial Services Commission (FSC) intends to submit a stablecoin-focused bill to the National Assembly this October.

The proposed legislation is expected to set standards for token issuance, collateral management, and internal risk controls. It will also be incorporated into the second stage of the country’s Virtual Asset User Protection Act, where lawmakers have already put forward several related initiatives.

This legislative push aligns closely with President Lee Jae Myung’s campaign promise to foster a strong domestic stablecoin market. His broader objective is to curb dependence on dollar-based tokens while reinforcing South Korea’s monetary independence.

The effort has attracted backing from some of the country’s most influential institutions. Representatives from tech giants Naver and Kakao, along with the nation’s four largest banks—KB Kookmin, Woori, Shinhan, and Hana—took part in recent parliamentary discussions on the matter. Industry voices stressed the importance of collaboration between banks and payment providers to ensure smooth interoperability.

At the same time, a separate initiative is being advanced by eight major banks, including Nonghyup, Corporate, Suhyup, Citi Korea, and SC First Bank, which are preparing to launch a won-pegged stablecoin by late 2025 or early 2026. This project is likely to take the form of either a trust-based structure or a 1:1 deposit token system, pending regulatory approval. It has already received support from blockchain advocacy groups as well as the Korea Financial Telecommunications and Clearings Institute.

Meanwhile, the United States has moved to solidify its dominance in the sector. Last month, President Donald Trump signed the Genius Act into law, a landmark regulatory framework designed to cement the U.S. dollar’s leadership role in the global digital asset market through stablecoins.

The American move has fueled momentum abroad for local alternatives to dollar-pegged tokens. In neighboring Japan, preparations are nearly complete for the rollout of the country’s first yen-backed stablecoin.