Home > Business > Finance

DP proposes bill on stablecoins in move to realize Lee campaign pledge

Published: 28 Jul. 2025, 16:28

Democratic Party Rep. Ahn Do-geol speaks during a policy discussion roundtable on stablecoins at the Korea Financial Investment Association headquarters in Yeouido, western Seoul, on July 23. [YONHAP]

The Democratic Party (DP) proposed a bill to institutionalize stablecoins, marking the first legislative initiative from the National Assembly-controlling party to concretely realize President Lee Jae Myung’s campaign pledge on the issue.

Stablecoins are a type of virtual asset that pegs its value to traditional currencies like the U.S. dollar or the Korean won, aiming to minimize price volatility. The legislation reflects the idea that Korea must develop a “won-based stablecoin” in response to the growing dominance of dollar-based stablecoins in global financial markets.

On Monday, DP Rep. Ahn Do-geol of the National Assembly’s Strategy and Finance Committee announced that he had submitted a bill on the issuance and circulation of value-stable digital assets. The bill uses the term “value-stable digital assets” as another name for stablecoins.

While DP Rep. Min Byoung-dug included some stablecoin-related content in the digital asset framework act he proposed last month, this is the first bill that comprehensively regulates the ecosystem surrounding the issuance, distribution and control of won-based stablecoins.

In the United States, the recent passage of the GENIUS Act brought stablecoins into the regulatory mainstream. With lower transaction fees and near-instant settlement, stablecoins are seen as an emerging mainstream payment method in the international market.

Ahn's newly proposed bill covers the full regulatory framework for stablecoins — from issuance and distribution to reserve requirements, user protections and implications for monetary and foreign exchange policy.

Democratic Party Rep. Min Byoung-dug speaks during an event on digital currency policy at the National Assembly in Yeouido, western Seoul, on July 22. [YONHAP]

Under the bill, stablecoin issuers must be pre-approved by the Financial Services Commission (FSC) and meet eligibility criteria including: being a financial institution or a corporation under commercial law, having at least 5 billion won ($3.6 million) in capital and maintaining proper IT infrastructure and dedicated personnel.

All stablecoins must be backed 100 percent or more by high-liquidity assets, such as cash, demand deposits, government bonds or municipal bonds. To prevent deposit-like behavior and potential disruptions in the financial market, interest payments on stablecoins are prohibited.

The bill also includes user protection measures. In the event of bankruptcy, a stablecoin issuer’s reserve assets must be prioritized for user reimbursement and cannot be seized or used as collateral. Reimbursement must be made within three business days of a user’s request.

Exchanges must evaluate the issuer’s qualifications, disclosures and any legal violations both before and after listing the stablecoin. The FSC is authorized to take emergency measures if market disruption is feared.

U.S. President Donald Trump displays the GENIUS Act, which codifies the use of stablecoins, after signing it in the East Room of the White House in Washington on July 18. [AP/YONHAP]

The Bank of Korea can request data, joint inspections or emergency orders to support monetary policy, while the Ministry of Economy and Finance may exercise similar authority from a foreign exchange policy standpoint.

“This bill stems from discussions within the DP’s Committee on Future Economic Growth Strategy and reflects President Lee’s campaign pledge,” Ahn said. “It was developed through over 10 rounds of in-depth discussions and consultations with government ministries, financial authorities, academics and industry experts.

“Stablecoins are no longer an experiment — they are the lifeblood of the digital economy and the frontline of currency sovereignty in the digital era,” Ahn added. “Like the United States with its digital dollar, Korea must enter a new era of financial sovereignty with a won-based stablecoin.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY SHIN HYE-YEON [[email protected]]