Democratic Party of Korea to launch 'Digital Asset TF' led by floor leader…speeding up related discussions

The Democratic Party of Korea will launch a task force (TF) centered on the floor leader to discuss digital asset (virtual asset) bills as early as next week.

On the 5th, according to Hankyung.com reporting, the Democratic Party suddenly dropped its plan to create a non-permanent special committee called the 'Digital Asset Special Committee,' which had been promoted by individual party lawmakers, and decided to convert it into a floor-leader-led 'Digital Asset Task Force (TF)' (tentative name). The overall TF will be entrusted to Democratic Party lawmaker Lee Jeong-mun. The TF is expected to launch as early as next week.

A National Assembly official said, "There was a decision by floor leader Kim Byeong-gi to convert the 'Digital Asset Special Committee,' which was confirmed for establishment at the party's Supreme Council on the 22nd of last month, into a TF," and "because there are various opinions within the party on digital assets and they are not all aligned, the party-level TF was converted and will be pursued to speed up related discussions."

The Digital Asset Special Committee was originally the body proposed by Rep. Min Byeong-deok of the Democratic Party. It is an organization to discuss bills focusing on digital assets, including an industry-specific bill, the Digital Asset Framework Act (Innovation Act), and stablecoins.

Earlier, Rep. Min formed and operated a Digital Asset Committee under the election campaign committee in May before the presidential election. At the time, Rep. Min's office even released materials stating, "After the election, we will promote elevation to an official Digital Asset Special Committee under the Democratic Party." Rep. Min is the person who proposed the 'Digital Asset Framework Act,' the first industry bill on virtual assets.

However, with this TF conversion, Rep. Min and others who had been vocal on the issue have been excluded from consultations. Because of this, some in politics and the market have expressed concerns that the digital asset agenda, which needs to move quickly, has returned to square one.

A National Assembly official said, "There are several lawmakers with expertise in digital assets, yet the decision to form a floor-leader-centered TF again indicates that political dynamics were prioritized over expertise," and added, "At least the lawmakers who sponsored the related bills should lead the consultative body, but in fact the situation has led to a reexamination from square one." He added, "Because this is a high-profile issue, it is evidence that the internal struggle for 'leadership of the issue' within the party is fierce."

Shin Min-gyeong Hankyung.com reporter radio@hankyung.com