South Korea’s ruling party pushes for January passage of new digital asset act

South Korea is pushing to finalize a new digital asset act by January, after ruling and opposition lawmakers agreed on a stablecoin framework that had stalled negotiations for months.

Lawmakers met behind closed doors and settled the core dispute over who can issue won-based stablecoins. According to a Dec. 1 report by Maeli Business Newspaper, the parties agreed on a consortium model in which banks hold a majority stake but allow participation from tech firms. 

The structure aims to satisfy the Bank of Korea’s focus on monetary stability while giving the private sector space to innovate. It also offers the basis for what officials described as a “Korean-style stablecoin” with clear safeguards around reserves and issuance.

Government faces Dec. 10 deadline to submit proposal

Kang Joon-hyun, a senior Democratic Party lawmaker, said the government must submit its official proposal by Dec. 10. If it fails to meet that date, lawmakers plan to move ahead with their own version.

The current target is to pass the bill during the National Assembly’s January extraordinary session, following internal coordination with the ruling People Power Party and the president’s office.

The new act builds on the Digital Asset Basic Act passed earlier this year, which set licensing standards for issuers, reserve protection rules, and compliance obligations for virtual asset service providers.

The new legislation is meant to fill in the last major gaps by treating digital assets more like traditional financial products. It also sets clearer ground rules for U.S.-based stablecoins, something that’s becoming increasingly important as global players like USDT and USDC continue to dominate the market.

Officials say timely progress is important as crypto adoption in Korea continues to rise, especially among people aged 20 to 50. Delays in domestic regulation have raised concerns that local firms could fall behind markets like the U.S., EU, and Japan, all of which have tightened stablecoin oversight in 2025.

Additional reforms target security and capital markets

The meeting also covered separate bills on financial security and market transparency. Lawmakers plan to revise the Electronic Financial Transactions Act after several hacking incidents at major financial companies. Proposed changes include stronger penalties and post-incident enforcement.

The government is also working with opposition parties on a set of capital-market reforms. These include requiring mandatory tender offers in certain corporate situations and updating rules on how shares are allocated so that everyday investors get fairer access.