South Korea Charges Ahead: Stablecoin Legal Framework Expected by October 2025

Seoul readies a crypto watershed moment—regulators are set to greenlight Asia's most ambitious stablecoin rules before Halloween.

The Won Goes Stable (Finally)

After years of watching from the sidelines, South Korea's Financial Services Commission (FSA) is drafting legislation that could turn Seoul into a stablecoin hub. Insiders confirm the framework will cover issuance, reserves, and—critically—redemption guarantees.

Banks vs. Tech Giants: The Cage Match Begins

Local reports suggest Korea's legacy financial institutions are lobbying hard against tech firms issuing stablecoins. Meanwhile, Kakao and Naver engineers are allegedly already stress-testing KRW-pegged prototypes.

Global Implications

With Japan's FSA tightening stablecoin rules and Singapore taking a hands-off approach, Korea's middle path could set the regional standard. Just don't expect Wall Street to notice—they're still trying to mint 'blockchain' ETFs that track cloud computing stocks.

TLDR

• South Korea’s FSC will submit a stablecoin regulation bill to lawmakers in October 2025.

• The law will cover issuance rules, collateral oversight, and risk management standards.

• President Lee supports a won-pegged stablecoin to strengthen digital monetary control.

• Top banks may meet Circle’s president in Seoul to discuss future stablecoin roles.

South Korea’s Financial Services Commission (FSC) plans to submit a bill regulating stablecoins to the country’s legislature in October. The planned legislation is expected to cover requirements related to stablecoin issuance, collateral management, and internal risk control. The proposal is a part of South Korea’s expanding digital asset legal framework and is aimed at building a regulated environment for asset-backed digital currencies.

According to a report from MoneyToday, lawmaker Park Min-kyu confirmed receiving the FSC’s submission plan during a stablecoin policy meeting held on August 18. The bill will likely FORM a component of the government’s second-phase digital asset law, which is currently in preparation.

President Lee Jae Myung, who took office earlier this year, has made digital finance policy a national priority. He has pledged to create a robust market for stablecoins pegged to the Korean won. His administration believes such development could support national monetary sovereignty in the evolving global finance landscape.

Local Firms and Banks Move Toward Stablecoin Adoption

South Korea’s major financial and tech firms have already begun laying the groundwork to engage in stablecoin issuance and usage. Local banks and payment service providers are actively preparing related services. Several firms have as a result applied for stablecoin-related trademarks, anticipating regulatory approval.

During the recent discussion session attended by lawmakers, representatives from companies such as Naver and Kakao were present. Executives from KB Kookmin, Woori, Shinhan, and Hana—South Korea’s four largest banks—also joined the meeting. Some participants supported creating a joint network between the banking and payments sectors to ensure cross-industry alignment and innovation in future stablecoin applications.

A collaborative approach is being encouraged to ensure that stablecoins issued within the country can function across platforms and institutions while maintaining compliance and security standards.

Potential Meeting with Circle and Growing Global Influence

According to a Yonhap report, executives from South Korea’s largest banks are reviewing plans to meet with Heath Tarbert, president of Circle—the issuer of USDC—during his upcoming visit to Seoul. The meeting, expected to take place next week, could focus on cooperation in the stablecoin space, technical knowledge sharing, and possible partnerships.

These moves as a result also align with global developments. Japan is preparing to issue its first yen-pegged stablecoin through fintech company JPYC, while the United States recently passed the Genius Act to regulate stablecoins at the federal level.

South Korea’s initiative comes amid increased global activity and reflects its intent to maintain competitiveness in digital finance innovation.

Central Bank Voices Caution Amid Expansion Efforts

While the government supports stablecoin integration, South Korea’s central bank has expressed concerns. Bank of Korea Governor Lee Chang-yong noted in July that the issuance of stablecoins tied to the won should be limited to licensed banking institutions.

The central bank as a result warned that the uncontrolled approval of multiple stablecoin issuers could challenge the country’s strict foreign currency rules. Governor Lee emphasized the need to maintain oversight to ensure that the introduction of stablecoins does not disrupt financial policy or economic stability.

The FSC’s upcoming proposal aims to address these concerns by clearly outlining who can issue stablecoins and under what conditions, helping to balance innovation with control.