Ruling party and government: stablecoin issuer to be 'consortium with banks holding 51% stake'

Korea Economic Daily

Summary

The Democratic Party of Korea and the government said they will push to legislate the 'Basic Digital Assets Act' to allow only a consortium in which commercial banks hold a 51% stake to issue won-denominated stablecoins.
Rep. Kang Jun-hyeon urged the government to provide a framework for the bill, and said that if a government proposal is not released by December 10, the National Assembly will lead the legislation.
The party and government also said they will actively pursue amendments to the Capital Markets Act and the Electronic Financial Transactions Act, including M&A involving unlisted companies, mandatory tender offer system, and the introduction of punitive fines.

The Democratic Party of Korea and the government said they will push to legislate the 'Basic Digital Assets Act' to allow won-denominated stablecoins to be issued by a consortium in which commercial banks hold 51% equity.

Kang Jun-hyeon, the ruling party's ranking member of the National Assembly's Political Affairs Committee, said on the 1st at the National Assembly after finishing a meeting with the Financial Services Commission and the party-government consultative meeting, "The issue is the (won-denominated stablecoin) issuer, but coordination among the FSC, the Bank of Korea, and banks seems to be largely finished," he said.

Kang said, "You should give the framework of the bills the government is preparing quickly so the National Assembly can discuss them," and explained, "I asked to have (the government proposal) by December 10. If they do not share it, the ranking member will lead and legislate (in the National Assembly)."

He added, "(After the bill is proposed) I suggested going through a process of public debate with the party's digital asset task force (TF)," and supplemented, "Even if discussion within the year is possible, won't it need to go through public debate work until January? I think the discussion process will be lengthened because there are many stakeholders."

Regarding amendments to the Capital Markets Act, which include applying fair value when determining acquisition and merger prices for listed corporations and introducing a mandatory tender offer system, Kang mentioned, "There was convergence of views that the government side needs to persuade the People Power Party."

On the amendment to the Electronic Financial Transactions Act, which includes introducing punitive fines for information leaks due to hacking and other breaches, he emphasized, "There is no disagreement with the opposition party," and "We will actively push this during bill review."

In addition, the party and government decided to promote legislation to establish President Lee Jae-myung's financial pledge, the 'People's Financial Stability Fund', and to pursue legislation to supplement the so-called 'bad bank' New Leap Fund.

Shin Hyun-bo, Hankyung.com reporter greaterfool@hankyung.com