South Korean lawmakers are escalating demands for stablecoin legislation as regulatory infighting between the Bank of Korea and Financial Services Commission stalls progress. The emergence of a Korean won-pegged stablecoin circulating overseas has intensified concerns about monetary sovereignty.

Rep. Kim Sang-hoon, chair of the National Assembly's Special Committee on Digital Assets, warns that bureaucratic delays risk ceding control of KRW-denominated stablecoins to foreign issuers. "When other jurisdictions move faster, we surrender not just market share but sovereign monetary policy tools," Kim stated during a Seoul legal conference.

The deadlock centers on governance disputes between financial regulators, with President Lee Jae-myung's administration failing to deliver promised swift action. Market participants report accelerating offshore KRW stablecoin development despite the legislative vacuum.