"For the Commercialization of KRW Stablecoins and STOs, the Speed of Legislation Must Accelerate"

Industry Voices: "Legislation is Urgently Needed for Commercialization"

Opinions on the Need for Differentiation of KRW Stablecoins

There is a growing call for rapid legislation to support the commercialization of KRW stablecoins and security token offerings (STO). It is pointed out that, regardless of the existence of technological infrastructure, it is difficult to advance into actual business unless a legal foundation is established.

At the 'Internet Capital Market' seminar hosted by Solana Foundation on the 21st at Hashed Lounge in Gangnam-gu, Seoul, Jongwan Kim, Senior Manager of the Digital Asset Solutions Team at Mirae Asset Securities, said, "Blockchain is a technology that can fundamentally transform existing financial infrastructure, and it is a trend that must be embraced," adding, "To do so, rapid legislation is necessary."

Kim stated, "Mirae Asset is developing its own STO platform that complies with domestic regulations. We are also seeking various business opportunities with overseas partners. However, in Korea, related bills are still pending in the National Assembly. Unless these bills pass, no matter how prepared the infrastructure is, it is not possible to issue security tokens." He added, "Compared to major Asian countries such as Japan and Hong Kong, Korea is somewhat lagging in legislative speed."

Jaesuk Hong, Senior Manager at Shinhan Investment Corp., also emphasized the importance of legislation. He pointed out, "The biggest hurdle to issuing KRW stablecoins is the law and operations. No matter how outstanding the technology and issuance platform are, if legal and operational requirements are not met, it will be difficult to link this to actual business."

He also projected that traditional financial institutions will likely take the lead in the KRW stablecoin industry. Hong explained, "There is fierce competition between fintech companies and traditional financial institutions in Korea. However, Korean policymakers tend to design new laws and systems in ways that are advantageous to traditional financial institutions." He further commented, "Ultimately, I believe that traditional financial institutions will gain an even more advantageous position and will be able to lead the industry."

Youngwoong Park, Manager at Shinhan Card, said, "Even if relevant laws are enacted, it will be difficult for financial companies to move forward with their businesses without amendments to the Capital Markets Act, Specialized Credit Finance Business Act, and Electronic Financial Transactions Act specific to each sector. Currently, both approaches—through sandboxes or legislative direction—remain unclear."

He also voiced the opinion that for KRW stablecoins to be commercialized, they must establish clear differentiation from existing payment methods. The explanation is that KRW stablecoins must have a distinct competitive edge that goes beyond simply substituting for other payment means to play a real role within the ecosystem.