South Korea plans to require stablecoin issuers to be controlled by banks, with a minimum paid-in capital of at least 5 billion KRW.

On January 8, the plan for South Korea to allow banks to issue Korean won stablecoins faced opposition from legislators, highlighting disagreements among the ruling Democratic Party, financial regulators, and the central bank. Currently, the Korea Financial Services Commission (FSC) has shifted its stance to support the Bank of Korea (BOK) proposal, which limits stablecoin issuance to consortiums led by banks with majority control. Under the proposed amendment, stablecoins can be issued by consortiums in which banks hold the majority stake, but banks must maintain overall majority control (more than 50% ownership). Technology companies can become the single largest shareholders but must hold less than the bank’s overall shareholding. The proposal will impose stricter requirements on cryptocurrency trading platforms, such as higher IT stability standards, mandatory compensation for losses caused by hacking attacks, and fines of up to 10% of annual revenue. Stablecoin issuers will need at least 5 billion KRW (USD 3.7 million) in paid-in capital, and regulators may raise this threshold as the market develops.