New regulations for Korean stablecoins: banks must have majority control, and exchanges face fines up to 10% of annual revenue

【ChainNews】South Korea’s stablecoin policy has new developments. According to the latest submitted amendment bill, the Korea Financial Services Commission (FSC) now supports the central bank’s plan—limiting the issuance rights of stablecoins to alliances led by banks with majority control.

What does this mean? Banks must hold the majority of shares, but tech companies also have a chance to participate—as long as they become the largest single shareholder and the banks maintain overall control. It sounds like a balance, giving traditional financial institutions a say while leaving room for technological innovation.

But that’s not all. The days for exchanges will become more stringent. The new regulations will raise standards for information technology stability, require mandatory compensation for damages caused by hacking attacks, and impose fines up to 10% of annual revenue. In other words, security vulnerabilities are no longer just technical issues but come with real financial costs.

The entry threshold for stablecoin issuers has also been set—at least 5 billion Korean won (about $3.7 million) in paid-in capital. As the market develops, this number may be increased.

Interestingly, the ruling party, financial regulators, and the central bank do not have entirely aligned views on this plan. Members of parliament are preparing a special working group to discuss alternative options. The final direction of the policy will depend on subsequent negotiations.