Democratic Party: "Digital Asset Framework Act to be introduced before the Lunar New Year holiday"…differences with the Bank of Korea persist

Push to introduce the second-phase digital asset bill, targeting before the Lunar New Year

Need to narrow differences with the Bank of Korea over stablecoin structure

No agreement yet on "mandatory 51% bank ownership"

Stablecoin issuer capital requirement: "at least 5 billion won"

The Democratic Party of Korea has set a goal of introducing the second-phase digital asset bill by no later than the Lunar New Year holiday. However, key issues—including the structure for issuing stablecoins—still show wide gaps in views with the Bank of Korea. The party said it will do its utmost to reconcile differences among stakeholders, including the Financial Services Commission and the central bank, before submitting any bill.

On the 8th, the Democratic Party’s Digital Asset Task Force (TF) held a closed-door meeting at the National Assembly Members’ Office Building to discuss key points of contention in the second-phase digital asset bill. The meeting focused on the division of roles with the Bank of Korea, how to establish a Digital Asset Committee, and requirements for issuing stablecoins.

Rep. Ahn Do-geol said in a briefing after the meeting, "We are aiming to introduce the second-phase digital asset bill before the Lunar New Year," adding, "At the TF level, we have finished organizing the issues, and based on that we will continue discussions with the policy committee chair and consultations with the government through to the end."

The second-phase digital asset law is an industry act encompassing the broader market, including issuance and disclosure of digital assets such as stablecoins (digital assets whose value is pegged to fiat currency), as well as exchange regulation. Legislative discussions began last year, but progress has been slow due to interagency differences over a core issue: the issuance structure for won-pegged stablecoins.

The meeting also discussed how the Bank of Korea and the FSC would consult during the stablecoin issuance process. Rep. Lee Jeong-moon, the TF chair, said, "The Bank of Korea is calling for the introduction of a unanimity requirement regarding approval of stablecoin issuers, and consultations with the FSC are under way," adding, "Many lawmakers formed a consensus that a collegial approach using the existing consultation procedures with the FSC is more realistic."

It was also reported that the parties have still failed to find common ground on the most contentious issue: a provision mandating "51% bank ownership" for stablecoin issuers. Rep. Lee Kang-il said, "On the '51% bank-ownership consortium,' neither side is in a position to make concessions, so the situation is extremely tense," adding, "One mediation proposal has now been drafted and delivered to both sides."

The minimum capital requirement—seen as a key entry barrier for issuers—has been broadly set at "at least 5 billion won." Rep. Ahn said, "Many were of the view that a capital requirement of at least 5 billion won for stablecoin issuers is appropriate, at a level similar to that for electronic money businesses under the current Electronic Financial Transactions Act."

In addition, the TF meeting reportedly discussed the name of the digital asset bill, whether the Digital Asset Committee should be placed directly under the president, the creation of a new digital asset consultative body, and a registration and licensing framework for digital asset-related industries.