South Korea Moves to Pass Stablecoin Law by Year-End

• South Korea held its first official government stablecoin forum on July 21, 2026.
• The US Genius Act in January 2027 is pushing South Korea to pass its stablecoin law.
• South Korea’s ruling and opposition parties both backed a year-end legislation push.

South Korea’s government convened its first official forum on stablecoin legislation on Tuesday, with Deputy Prime Minister and Finance Minister Koo Yun-cheol presiding over discussions that signal a push to enact the Framework Act on Digital Assets before the end of 2026.

The Korea Strategic Economy Forum, held at Lotte Hotel Seoul and jointly organized by the Ministry of Finance and Economy and the Korea Institute for Industrial Economics and Trade, focused on stablecoins and AI agents under the theme of AI Agents and Physical AI. The event brought together financial regulators, lawmakers from both the ruling party and the opposition Democratic Party, and industry leaders.

What Is Driving The Urgency

The United States Genius Act, which establishes a regulatory framework for dollar stablecoins, is set to take full effect in January 2027. Once it does, dollar stablecoin issuance and distribution are expected to expand rapidly. South Korean policymakers and industry participants see this as a direct threat to the Won’s role in digital payments if domestic legislation is not in place.

Former Minister Park Young-sun, who chairs the Strategic Economy Advisory Group at the Finance Ministry, described stablecoins as payment infrastructure for the AI era rather than speculative digital assets and said national competitiveness would be determined not just by technology but by how early institutional frameworks are established.

Financial Services Commission Chairman Lee Won-geon had already reported to President Lee Jae-myung on 15 July that digital asset legislation, including stablecoin issuance frameworks and strengthened anti-money laundering regulations, would be completed within the year.

Legislative Timeline

The ruling party and opposition Democratic Party appear to have reached a working consensus on moving quickly:

• The government’s 2026 Economic Growth Strategy announced on 14 July included a commitment to enact the Framework Act on Digital Assets in the second half of 2026.
• The Democratic Party held a closed-door briefing with the Financial Services Commission and Financial Supervisory Service on 20 July to discuss the bill.
• Democratic Party lawmaker Park Min-kyu said a party-government integration plan would be proposed in September following the party’s national convention on 17 August.
• Ruling party floor leader Park Sang-hyuk said there was general consensus that the government should prepare legislatively ahead of the US Genius Act taking effect.

Stablecoin Issuance Debate

One unresolved question is who gets to issue Won-denominated stablecoins. Democratic Party lawmaker Ahn Do-geol proposed a hybrid structure combining 50% bank-led issuance with 34% fintech participation, describing it as a way to preserve both stability and innovation. 

The Bank of Korea has stated a preference for a banking-sector-led consortium as the primary issuer. The final structure will be a central negotiating point as the bill moves toward a September consolidation plan.

Industry participants said delays in legislation are already creating problems, with one executive warning that the longer the Framework Act is postponed, the larger the scope for illegal money laundering through unregulated stablecoin activity becomes.

Related: South Korea Restarts Digital Asset Law Discussions With Year-End Target