South Korea’s political landscape is experiencing another wave of tension as the debate over digital finance intensifies. The ruling Democratic Party has issued a sharp ultimatum to regulators: if they do not present their own stablecoin bill by December 10, lawmakers will take over. The topic carries major implications for the crypto market and the country’s long-term strategy — President Lee Jae Myung has named the development of a domestic stablecoin as one of his priorities.

Ultimatum to regulators: submit a draft by December 10 or lawmakers step in

According to Maeil Economic News, the Democratic Party formally urged the Financial Services Commission (FSC) to submit a complete legislative proposal for the domestic stablecoin market by December 10. Lawmaker Kang Jun-hyeon, secretary of the National Assembly’s Finance Committee, called it the final warning.

Kang stressed that if the government fails to act, he will submit his own bill. The aim is to push the legislation through during the current parliamentary session and have it approved in January.

Closed-door talks and a banking consortium proposal

On Monday, committee members and the FSC held a closed-door meeting to advance work on the regulatory framework. According to Kang, officials are now considering a model in which stablecoins would be issued by a consortium formed by the Bank of Korea, the FSC, and domestic banks. Banks would hold more than 50% of the consortium.

The financial regulator later stated that no final deal has been reached, and discussions are ongoing.

A fight for monetary sovereignty

The push for a domestic stablecoin is coming directly from the presidential office. President Lee Jae Myung, elected this year, has listed the creation of a safe and reliable stablecoin market among his strategic goals. The main motivation is protecting the country’s monetary sovereignty amid concerns that U.S. dollar stablecoins are becoming too dominant.

If the banking-led won-denominated stablecoin is approved, South Korea could become one of the first major markets where issuance is reserved exclusively for regulated financial institutions.

Regulation is dragging — now a turning point may be coming

Several lawmakers have previously introduced regulatory proposals, but none have progressed far enough in the legislative process. The banking consortium model reflects the long-standing stance of the Bank of Korea: stablecoins must be issued only under licensed banks, not by tech companies or private issuers.

Sources:

https://www.mk.co.kr/news/stock/11481608

https://www.korea.kr/briefing/actuallyView.do?newsId=148955651

https://www.theblock.co/post/381014/south-koreas-ultimatum-stablecoin-bill