"Securing the New Stablecoin Market"... Law Firms Expanding the Advisory Market

Source

Korea Economic Daily

Summary

It was reported that following the passage of the US GENIUS Act and proposals of stablecoin legislation in Korean politics, the legalization of the domestic stablecoin market is accelerating rapidly.
Various sectors—card companies, securities firms, asset managers, and big techs—are focusing on stablecoins as new business opportunities or means to innovate investment processes.
Major law firms are actively responding by building large-scale dedicated teams, differentiating their expertise, and expanding their footprint in the stablecoin market and legal advisory sector.

Impact of the GENIUS Act Pass in the US

Major Law Firms Stepping Up Responses

Accelerated Legislation of Stablecoins

President Lee’s Campaign Pledge…Possible Implementation Within the Year

Non-financial Companies Eyeing the Stablecoin Market

Kim & Chang Establishes the Largest Dedicated Team in Korea

Bae, Kim & Lee Directly Proposes Related Legislation

Sejong, HwaWoo, etc. Continue to Recruit Experts

With the passage of the GENIUS Act in the US, a wave of bills related to Korean won-based stablecoins has been introduced in the Korean political sphere, prompting leading law firms to expand their dedicated teams. The demand for legal advisory services is surging as both financial and non-financial companies seek to explore new business opportunities.

◇ Exploding Interest From Both Financial and Non-financial Firms

According to the legal community and political circles on the 3rd, Min Byung-deok and Ahn Do-geol of the Democratic Party, as well as Kim Eun-hye of the People Power Party, have successively proposed stablecoin-related bills, and the possibility of passing such legislation within the year is being discussed as this is one of President Lee’s campaign commitments.

With the rapid acceleration of domestic stablecoin legislation, companies are under growing pressure to prepare. Kim & Chang, Korea’s largest law firm, has assigned more than 60 experts to its dedicated team, while Bae, Kim & Lee LLC and Yulchon LLC have built teams of around 40 each. Sejong, HwaWoo, Barun, and Lee & Ko have also established special teams of 20 to 30 members.

Major card companies are aggressively registering trademarks and developing business plans related to stablecoins. Attorney Kim Ik-hyun of Yulchon stated, “Card companies see stablecoins as a potential replacement for the existing payment system in daily transactions, perceiving it as a matter of survival.”

Securities firms and asset managers are paying attention to ways to utilize stablecoins in connection with Bitcoin spot Exchange Traded Funds (ETFs), as direct payments using stablecoins could streamline investment procedures.

Non-financial companies are focusing on stablecoin issuance itself as a new source of revenue. Major big techs such as Kakao and Naver, as well as various startups, are considering market entry by benchmarking successful overseas examples like Tether (USDT). Attorney Kim Jun-young of Kim & Chang commented, “If a stablecoin regime is introduced, it may drastically change business conditions, and thus, there is widespread interest regardless of industry, from fintech to manufacturing.”

◇ Differentiated Strategies for Each Law Firm

Law firms are also seeking market leadership by differentiating their areas of expertise. Kim & Chang, with the largest dedicated team, provides comprehensive advisory services covering partnership agreements with overseas stablecoin operators and payment services utilizing stablecoins.

Bae, Kim & Lee is taking an active role, with attorney Kim Hyo-bong, a former Financial Supervisory Service official, proposing stablecoin legislation at National Assembly and government forums. The firm is also providing advisory services on virtual asset regulations in the financial sector and consulting for fintech companies entering the stablecoin business. Yulchon has emphasized its accumulated experience since forming its first dedicated team in 2016, highlighting its strengths in areas such as anti-money laundering (AML) audits.

Sejong’s virtual asset team, led by attorney Hwang Hyun-il, formerly of the Financial Services Commission, offers one-stop services that cover risks related to international taxation. Lee & Ko has provided consulting for designating Korea's first Tokenized Securities (STO) as an innovative financial service and offers comprehensive consulting to financial institutions reviewing entry into the stablecoin payment sector.

HwaWoo’s virtual asset practice group, after recruiting Kim Yong-tae, former Director of the Digital Finance Innovation Bureau at the Financial Supervisory Service, is focusing on advisory services for stablecoins and Bitcoin spot ETFs. Barun delivers litigation-oriented services based on its experience in handling disputes such as injunctions against Cyworld’s cryptocurrency issuance ban and winning lawsuits for damages from hacking incidents. Jipyong provides advisory support for the domestic market entry of overseas virtual asset companies and compliance with international regulations.

The hosting of seminars and forums continues. Barun will hold a seminar on the 19th of this month titled “Global Regulatory Trends and Business of Stablecoins.” Yulchon is planning a comprehensive seminar in September, and Jipyong Law and Policy Research Institute will host a regular seminar in October themed “Virtual Assets and Legal Order.” Last month, Lee & Ko jointly organized an academic seminar with Digital Asset eXchange Alliance (DAXA), Blockchain Law Society, and Digital Finance Law Forum.

Reporter Lan Heo why@hankyung.com