National Assembly says Digital Asset Basic Act must be passed quickly

Finance industry outlines real-world uses including mobile wallets and AI payments

Calls grow to widen debate beyond issuance to distribution and market development

South Korea’s National Assembly and the financial industry called for swift legislation on won-backed stablecoins and a broader institutional framework to expand their real-world use.

At a policy seminar held on Nov. 5 at the National Assembly Members’ Office Building in Seoul’s Yeouido district to mark the publication of “The Future of Money, the Stablecoin Revolution,” lawmakers and industry officials discussed the Digital Asset Basic Act, broader use of won stablecoins, payment infrastructure and ways to safeguard financial stability.

National Assembly says Digital Asset Basic Act must be rushed through, citing financial innovation and monetary sovereignty

National Assembly Speaker Cho Jung-sik said in congratulatory remarks that stablecoins are central to digital financial innovation. He described South Korea as an IT powerhouse and digital leader, adding that securing leadership in digital currencies could help the country become a financial frontrunner as well. He also said the legislature would work to reflect such discussions in policy.

Rep. Yoo Dong-soo, chairman of the National Assembly’s Political Affairs Committee, said the Digital Asset Basic Act should be passed quickly and that won stablecoins are needed to help secure monetary sovereignty. He said he was aware of industry frustration over delays to the legislation and expects a government bill to be released soon.

Yoo added that South Korea needs to respond as dollar-based stablecoins dominate the global market and challenge the won’s competitiveness. A key question is whether the won can preserve its share of the international currency market in the digital-currency era. That will require an institutional design that balances financial stability with industry growth.

Rep. Ahn Do-geol of the Democratic Party, a co-host of the event, said rapid passage of the Digital Asset Basic Act is needed to create an institutional foundation for won stablecoins and secure a new growth engine for the financial industry. He called stablecoins essential rather than optional and said they could become core infrastructure for the digital economy by creating new transactions, financial products and services. He added that the National Assembly needs to draft legislation, including the Digital Asset Basic Act, that promotes innovation while managing risk.

Finance industry says focus should shift beyond issuance to real-world use, with wallets and AI payments among potential applications

Moon Cheol-woo, chairman of the Digital Asset Finance Association, said won stablecoins could deliver broad economic value and practical uses. He said they could replace existing payment networks in trade finance, tokenized assets, artificial intelligence payments, tourism and K-culture. He estimated their annual economic value at about 36 trillion won ($26 billion), rising to as much as 72 trillion won ($52 billion) depending on adoption. He argued that the priority should go beyond deciding who can issue them and include building an ecosystem and policy support to expand actual use.

The discussion that followed focused on practical rollout plans and the regulatory hurdles that would need to be cleared for commercialization.

Park Hyun-soo, a managing director at Samsung Global Research, said a won stablecoin could expand payment services through Samsung Wallet. If such a stablecoin is issued, it would be added to Samsung Wallet, he said. In the U.S., Samsung Wallet already offers custody for dollar-based stablecoins and overseas remittance services to 60 countries.

Park also said financial institutions are reviewing various ways to use stablecoins in day-to-day services. Once issuance of tokenized securities, or STOs, begins in earnest next year, using stablecoins as a settlement tool on blockchain networks would be efficient, he said. He added that the card and insurance industries are also discussing the use of stablecoins for payments and premium collection.

Song Ho-geun, vice president at KakaoBank, said initial use cases for won stablecoins could center on foreign tourists and payments by AI agents. South Korea should first focus on industries where it already has a competitive edge, he said, pointing to K-culture, K-beauty and tourism. Rather than trying to persuade domestic consumers to adopt a new payment method, it would be more effective to target foreign visitors to South Korea first, he added.

Song said stablecoins would become more useful in an environment where AI agents handle payments as well as product searches and purchases. Traditional bank transfers can carry fees of 100 won to 400 won (7 cents to 29 cents) per transaction, limiting small-value payments. As cross-border transactions by AI agents increase, won stablecoins could become an efficient means of payment.

The event also produced calls to broaden the policy debate beyond specific use cases toward market development and a distribution ecosystem for stablecoins. Chung Jung-ae, a managing director at Visa, said domestic discussion has so far focused on the need for stablecoins and on who should issue them. The debate should also address how to activate the market, she said.

Chung said Visa already uses stablecoins for settlement with overseas card issuers and acquirers, with annual volume of about 36 trillion won ($26 billion). She also cited Japan’s creation of a separate licensing framework for stablecoin issuance, distribution and brokerage. South Korea should likewise discuss ways to build a distribution ecosystem, including incentives for consumers to hold and use stablecoins in practice, she said.