South Korea Targets Jan. 9 Deadline for Digital Asset Framework Act

South Korea's Digital Asset Framework Act will be finalized by Jan. 9, 2027, according to Rep. Min Byung-duk of the Democratic Party, who set the deadline at a National Assembly forum on Nov. 13. The date matters because it lands nine days before the U.S. GENIUS Act takes effect on Jan. 18, 2027 — the first American federal framework for stablecoins, enacted in July last year.

Min said the ruling party, the opposition and financial authorities all agree the bill must pass before that Jan. 18 threshold. The National Assembly's regular session ends before an extraordinary session that generally runs through Jan. 9. Lawmakers plan to hold the bill's subcommittee once or twice and run a public hearing before completing the legislation inside that window.

Why is Korea racing the U.S. GENIUS Act?

The framework act would create the legal basis for won-backed stablecoins. Min wants the legislation accelerated because he expects dollar-based stablecoins to surge in like a "tsunami" once the GENIUS Act takes effect, he reiterated at the forum.

He also signaled the legislative timeline for the coming weeks. Intensive discussion of the Digital Asset Framework Act is likely to begin around the week after next, his comments indicated — an indirect hint at when the government's draft bill may finally be submitted. Financial authorities originally planned to send the proposal to the National Assembly last year, but debate over ownership caps for major exchange shareholders and stablecoin issuer eligibility delayed it.

What provisions are already on the table?

Two of the bill's most consequential provisions are already widely known:

• Shareholder caps: Ownership by major shareholders in virtual-asset exchanges would likely be capped at 15% to 20%.
• Bank consortium: Stablecoin issuers would likely be structured so banks in a consortium hold at least 50% plus one share.

Min questioned whether the shareholder cap belongs in the framework law at this stage. The National Assembly Research Service has argued the restriction could be unconstitutional, he noted, and exchanges would need further coordination to accept it.

His comments suggest a concrete legislative path: if the Financial Services Commission submits a bill containing shareholder caps and lawmakers fail to agree during deliberations, the provision could be stripped out. Min said the issue should instead be addressed in a third stage of legislation, after the market grows further. The Digital Asset Framework Act counts as second-stage legislation, following the Virtual Asset User Protection Act that took effect in 2024.

Who gets to issue won stablecoins?

On the bank-centered consortium model, Min took a directly critical line. That structure "would not work" given the number of other innovative companies in the market, he said, and non-bank consortiums should also be allowed so competition can drive market innovation.

The position sets up a clash inside the National Assembly's Political Affairs Committee. The Bank of Korea, which controls won issuance, has consistently backed a bank-centered consortium during drafting. The Financial Services Commission has said a technology company could still become the largest shareholder if multiple banks combine stakes to secure a majority — a partial opening that leaves the eligibility question unresolved.

The exchange shareholder cap and the issuer eligibility rules now look like the two provisions most likely to move as the bill moves through committee. With the government draft expected shortly and a Jan. 9 completion target, the coming extraordinary session will determine whether Korea enters the GENIUS Act era with a won stablecoin framework in place or without one.