- South Korea’s ruling party introduced a bill allowing domestic firms with $368K in equity to issue stablecoins under regulatory approval.
- The proposal delivers on President Lee’s campaign promise and aims to boost transparency and competition in South Korea’s digital asset market.
- KakaoPay shares surged 18% after the bill was announced, signaling market optimism toward a won-based stablecoin and new regulatory clarity.
South Korea’s ruling Democratic Party has introduced a new bill that would allow local companies to issue stablecoins, following through on President Lee Jae-myung’s campaign pledge to support digital assets.
Digital Asset Basic Act Opens Stablecoin Issuance
The Digital Asset Basic Act, proposed on Tuesday, permits South Korean companies with over 500 million won ($368,000) in equity capital to issue stablecoins, as reported by Bloomberg. Issuers must guarantee redemptions through reserves and obtain approval from the Financial Services Commission.
This move directly supports Lee’s promise to develop a regulated framework for domestic stablecoins. The purpose of the act is to encourage openness and stronger competition in one of the biggest crypto markets
Stablecoin Trading Sees Surge Amid Legislative Push
According to Bank of Korea data, transactions involving USDT, USDC, and USDS across five major South Korean exchanges reached 57 trillion won in the first quarter of 2025. Stablecoin volume is growing fast, often exceeding daily trades on traditional stock markets like Kospi and Kosdaq.
Over a third of the population participates in the crypto market, making South Korea a key region for digital asset growth. The new legislation provides the first clear path for compliant domestic stablecoin issuance.
Central Bank Pushback, Market Rally Follows Announcement
Bank of Korea Governor Rhee Chang-yong has warned against stablecoins issued by private firms, arguing that a won-pegged stablecoin should be led by the central bank to avoid monetary policy disruption.
Despite these concerns, the market reacted positively. Shares of KakaoPay Corp. jumped as much as 18% following news of the bill—its strongest performance since January 2024—as expectations rose for a government-backed stablecoin initiative.
This bill marks South Korea’s most decisive step toward stablecoin regulation since the collapse of TerraUSD in 2022, signaling a controlled return to asset-backed digital currencies.
