South Korea Weighs Bank-Majority Rules for Won Stablecoins as KB Completes Pilot
South Korea's Financial Services Commission is expected to present the Digital Asset Basic Act in November, with a proposal that would require banks to hold at least 50% plus one share of won stablecoin issuing consortiums. KB Financial Group has completed a proof-of-concept for a won-denominated stablecoin as lawmakers debate the framework.
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Bank-Led Issuance Proposal Under Debate
South Korea is moving toward bank-led rules for won-denominated stablecoins, with the Financial Services Commission (FSC) expected to present the main provisions of the Digital Asset Basic Act during November. Under the proposal reported by South Korean outlet ZDNet Korea on November 12, banks would hold at least 50% plus one share in any consortium authorized to issue won stablecoins. Lawmakers remain divided on the requirement, according to the same report.
Under the framework, cryptocurrency exchanges and payment companies could take part in distribution, customer transactions and merchant settlement, while issuance stays with financial institutions. The FSC has said ownership requirements for issuers have not been finalized, so the bank-majority structure remains subject to the legislative process.
KB Financial's Pilot
KB Financial Group, parent of South Korea's largest bank, has completed a proof-of-concept for a won-denominated stablecoin, according to Bitcoinist. The company announced the result on a Sunday, and the pilot is reported to focus on lowering transfer fees and speeding settlement. The source material does not give transaction volumes or a timeline for a commercial launch.
The pilot's timing coincides with the policy debate. It shows a bank-led model being tested in practice even as the legal ownership rules are still unsettled.
Why Regulators Favor Banks, and Industry Pushback
The Bank of Korea has backed a bank-centered approach. Its concern is that privately issued stablecoins could gain wide use in payments and affect financial markets. Regulators and lawmakers have also disagreed over issuer eligibility, ownership limits on exchanges and consumer protection, which has delayed the bill. The FSC had targeted November for parliamentary review.
Fintech companies oppose the restriction. At a November 12 National Assembly forum, VIDEX CEO Ryu Hong-ryeol said licensing should rest on business capability and risk management rather than on bank status. He proposed that banks manage reserves and liquidity while technology firms run blockchain operations, key management and payment services. Forum participants also discussed wallet custody, multisignature security and audit requirements, and legal experts called for clearer rules on stablecoin payments and settlement.
Implications for the Dunamu and Naver Financial Deal
The proposed framework could affect the planned business combination between Dunamu, the operator of Upbit, and Naver Financial. Under their agreement, Naver Financial would acquire Dunamu through a share exchange. Dunamu would provide trading and stablecoin distribution, while Naver Financial would handle merchant payments and settlement. Whether that division survives depends on how the final ownership rules treat exchanges and payment firms.
Why It Matters
For Traders
Won stablecoin rules are still unsettled, so headline-driven moves in Korean exchange equities or related tokens could reverse once the bill's ownership terms are published.
For Investors
A bank-majority licensing regime would concentrate won stablecoin issuance in incumbent banks, shaping which Korean crypto firms gain durable distribution roles.
For Builders
Any won stablecoin integration should be designed around a bank-issuer model with separate exchange and payment roles, since final custody and key management requirements may follow the framework's terms.
This article is for information only and is not financial advice. Read the full disclaimer.
