South Korea to Fast-Track Stablecoin Law, Eyes Bill Submission by Year-End

South Korea’s top financial regulator signaled an accelerated push to legislate stablecoins, outlining plans to submit a bill within the year while preparing corresponding enforcement decrees in advance.

Lee Ok-won, Chairman of the Financial Services Commission (FSC), said during a National Assembly audit on Oct. 20 that the agency aims to move beyond “symbolic legislation” to establish a practical, executable framework for stablecoins.

“The law will be advanced through normal legislative channels, but we will simultaneously prepare enforcement decrees and subsequent procedures to ensure speed,” Lee said. “We intend to make this a law that works in practice, not merely one that exists on paper.”

His comments came in response to Democratic Party lawmaker Yoo Dong-soo, who pressed the FSC to accelerate efforts, citing five major risk factors tied to stablecoins—reduced seigniorage revenue, weakened monetary policy effectiveness, erosion of payment system trust, threats to financial stability, and potential circumvention of foreign exchange regulations.

Yoo questioned whether these risks were being sufficiently reflected in the “second phase” of South Korea’s digital asset legislation. Lee replied that while the regulatory design remains in its early stages, “we’re working closely with relevant ministries to ensure robust safeguards and systemic stability.”

When asked directly whether the FSC intends to submit the stablecoin bill by year-end, Lee answered unambiguously: “Yes.”

Lee added that while stablecoins are currently used mainly in crypto trading, their potential use in payments and remittances is growing. “We are exploring institutional and scalability aspects in consultation with experts,” he said.

During the same session, Deputy Chairman Kwon Dae-young agreed with Yoo’s suggestion that a consortium model involving banks would be a desirable structure for stablecoin issuance.

South Korea’s initiative comes as regulators globally—from the U.S. to the EU—race to impose frameworks on stablecoins, which have grown into a crucial bridge between fiat and digital assets. The FSC’s pledge to submit legislation this year signals Seoul’s intention to keep pace with the evolving digital finance landscape while preemptively addressing systemic risks.