South Korea's Stablecoin Bill Falls Behind Schedule as Regulatory Agencies Clash Over Authority

South Korea’s financial sector faces mounting delays in establishing a regulatory framework for won-backed stablecoins. The FSC in up missed its December 10 submission deadline set by the ruling Democratic Party, pushing the legislative timeline further back with a new commitment to present proposals by the end of January 2026—aligning with President Lee Jae-myung’s earlier pledges on digital currency governance.

The core issue driving this delay isn’t administrative incompetence but rather fundamental disagreement between two key authorities. The Bank of Korea (BOK) and the FSC hold divergent views on how stablecoins should be regulated and issued. The BOK’s position centers on safeguarding monetary policy effectiveness: allowing major technology firms to launch stablecoins could dilute its control over money supply and financial stability. Consequently, the BOK is pushing for veto authority and direct oversight rights on all stablecoin issuance activities.

The FSC counters this position by arguing that its existing approval mechanisms are robust enough to manage the sector. Officials point to international precedent, noting that the EU and Japan rely primarily on fintech companies rather than banks as the main stablecoin issuers. This suggests a global framework where traditional banking institutions aren’t the exclusive gatekeepers of token-based currencies.

An FSC spokesperson acknowledged the bottleneck: “Coordinating positions across multiple regulatory bodies requires substantial additional time—we couldn’t meet the initial deadline and need further alignment with other agencies.” This statement reveals the structural challenge: without inter-agency consensus, South Korea struggles to craft forward-moving digital currency policy despite mounting pressure from both the political leadership and market participants awaiting clarity on won-backed stablecoin development.