Legislation to allow won-based stablecoins is unlikely to pass this year, as the Bank of Korea and financial regulators remain divided over whether banks must hold majority ownership in issuing entities, according to Korea JoongAng Daily. Both sides agree that banks should participate, but the central bank insists that lenders must own at least 51 percent, a stance regulators say would restrict innovation.
The BOK argues that letting tech firms lead issuance would create narrow banking risks and could undermine rules separating industrial and financial ownership. It also warns of foreign exchange vulnerabilities if stablecoins are used abroad to bypass currency controls. Regulators counter that a bank-dominated structure would deter potential issuers and limit market growth.
Several unresolved issues add to the delay, including issuance limits and oversight structure. The central bank has proposed a unanimous-vote interagency council, a move regulators say lacks legal precedent. The uncertainty has slowed private-sector planning, with some firms preparing contingency structures while others adopt a wait-and-see approach.
Experts say Korea needs a balanced model. They warn that too much bank control could suppress innovation, while too little could weaken trust and financial stability. With negotiations stalled, meaningful progress is expected only after lawmakers revisit the issue next year.