South Korea to Submit Stablecoin Bill in November, Targets December Passage

South Korea's government will submit its draft Digital Asset Framework Act to the National Assembly in November, with the ruling Democratic Party pushing for passage by December, according to Lee Kang-il, a Democratic Party lawmaker on the National Assembly's Political Affairs Committee.

Speaking at a forum held November 2 at the National Assembly Library in Yeouido, Seoul, Lee said the Financial Services Commission — the lead government authority on the file — has committed to delivering the government bill this month. "The Financial Services Commission, the government authority, says it will deliver the government bill in November," Lee said. "We will try to get it passed by December."

The Digital Asset Framework Act is second-stage legislation covering the entire virtual asset ecosystem: issuance, circulation, disclosure and listing. It follows South Korea's first-phase crypto rules, and its stablecoin provisions are the most contested piece.

What is still unresolved?

Two sticking points have split stakeholders. The first is whether to impose ownership limits on major shareholders of crypto exchanges. The second is whether won-denominated stablecoin issuance should be restricted to consortia in which banks hold a majority stake — defined as 50% plus one share or more. Neither issue has a negotiated answer, and both remain live variables in talks between the ruling and opposition parties.

The Financial Services Commission signaled its own urgency earlier this year, saying at a presidential policy briefing that it aimed to complete legislative passage within the year.

Why the delay?

Resistance from traditional financial institutions is the main brake on the bill. "We are putting in a great deal of effort, but progress is slow because of resistance from the legacy [financial] sector," Lee said. "I am frustrated as well and feel a great deal of regret toward everyone."

The ruling party's strategy is to pass a baseline framework first and amend later. "Once we get started and build the framework, we can then discuss what needs to be corrected and supplemented," Lee said. "We must pass [the Digital Asset Framework Act] quickly so that we can create the basic framework."

How big is the money at stake?

Lee put a hard number on the cost of inaction. More than 160 trillion won — roughly $119.4 billion — in digital assets flowed from South Korean exchanges to overseas exchanges and personal wallets last year alone, he said. "This is a signal that future competitiveness we should be securing in advance is moving overseas," Lee told the forum.

He also pointed to the U.S. as a competitive benchmark. When the GENIUS Act, the U.S. federal stablecoin law, takes effect in January next year, issuance of dollar-based stablecoins is expected to ramp up, with observers anticipating a wave of new dollar coins beyond Tether's USDT and Circle's USDC. Against that backdrop, Lee warned: "It is a major problem that we lack even basic legal safeguards." Critics argue that if legislation fails this year, South Korea's interests in finance and monetary policy could be undermined as dollar-linked tokens expand abroad.

What happens next?

Passage now hinges on the Political Affairs Committee's review schedule and cross-party negotiations, with a vote during December's extraordinary National Assembly session being floated. The outcome matters commercially, not just legally: South Korean virtual asset firms and banks preparing won-denominated stablecoin ventures face materially different business structures depending on where the final bill lands on issuer requirements and major-shareholder regulation.