South Korea’s financial regulator to submit stablecoin regulation bill in October

South Korea's Financial Services Commission (FSC) is expected to submit its stablecoin regulation bill to the country's legislative body in October.

According to local news outlet MoneyToday , Ruling Party lawmaker Park Min-kyu said Monday at a stablecoin-related discussion that he has received a report from the FSC containing such a plan.

The bill will establish requirements on stablecoin issuance, collateral management, and internal risk control systems, and is expected to be incorporated into the country's second digital asset legal framework that is currently under development.

The country's recently elected President Lee Jae Myung has pledged to establish an active local currency-pegged stablecoin market to strengthen its monetary sovereignty in the age of digital finance. Local banks and payment firms have followed suit, applying for stablecoin trademarks and preparing services that use the digital currency.

Representatives from South Korea's largest internet companies, Naver and Kakao, and major banks joined lawmakers at the stablecoin discussion on Monday. Some attendees called for a collaborative network between the payments and banking sectors to ensure concerted efforts for innovation and interoperability.

The four largest banks in South Korea — KB Kookmin, Woori, Shinhan and Hana — are also reviewing a potential meetup with USDC issuer Circle's President Heath Tarbert, who will be visiting the country next week, Yonhap news agency reported .

Neighboring Japan is also nearing the launch of its first yen-denominated stablecoin, as local fintech firm JPYC expects to gain approval to issue its stablecoin as early as fall, according to local news outlet Nikkei on Sunday.

Such efforts are driven in response to the U.S. President Donald Trump's mission to strengthen the global supremacy of the U.S. dollar via stablecoins. Last month, Trump signed the Genius Act into law, which was a landmark bill set to create a federal regulatory framework for stablecoins.

Meanwhile, South Korea's central bank has made several cautious comments on the potential risks of a won-pegged stablecoin market. Bank of Korea Governor  Lee Chang-yong said last month that the issuance of won stablecoins should be limited to licensed banking institutions, as irresponsible approvals of multiple stablecoins could disrupt the country's strict foreign currency policies.