Won-Pegged Stablecoin Law Expected to Hit South Korean Parliament

SEOUL, South Korea – The Financial Services Commission (FSC) of South Korea is finalizing a bill to regulate stablecoins pegged to the South Korean won. The legislation, which marks the second phase of the Virtual Asset User Protection Act, could be submitted to Parliament in October. The proposal aims to create a clear framework for the issuance, management, and collateral of local stablecoins.

The FSC's draft joins several other legislative initiatives already under discussion, giving the National Assembly multiple options for developing a regulatory strategy. Calls for a national digital currency have grown since President Lee Jae-Myung advocated for the idea during his election campaign, arguing it would reduce reliance on the US dollar and strengthen South Korea's influence in digital markets.

In a parallel development, eight major banks have announced they are exploring a potential joint venture to launch their own stablecoin starting in 2026, provided a regulatory framework is in place. The country's four largest banks have also scheduled talks with the president of the company Circle, signaling growing international interest in South Korea's regulatory direction.