Financial Supervisory Service to respond to stablecoin institutionalization… pushing to expand card issuers’ business scope

South Korea’s financial authorities are pushing to expand the scope of business permitted for card issuers to respond to changes in the payments market, including the institutionalization of stablecoins. The aim is to put in place an institutional framework so card companies can adapt to new areas of financial services, such as stablecoin-based payments.

According to industry sources on the 16th, the Financial Supervisory Service (FSS) held a briefing on financial supervisory operations for the small and medium-sized finance sector for 2026 and said it would pursue an expansion of card issuers’ business lines to secure future growth drivers.

The FSS believes that the structure of the payments market is changing rapidly alongside discussions on institutionalizing stablecoins. It plans to push for regulatory improvements so card companies can move beyond a business model centered on traditional card payments and respond to shifts in payment infrastructure.

Lee Jin, deputy assistant governor of the FSS’s small and medium-sized finance division, said, “With the spread of artificial intelligence (AI) and the platform economy, and the institutionalization of stablecoins, the financial environment is changing rapidly,” adding, “To avoid falling behind in the new competitive landscape, it is important to respond swiftly to change and secure growth engines.”