South Korean banks push to issue interest-bearing won stablecoin

South Korea's banking sector has consolidated its position to advocate for the issuance of a won-backed stablecoin led by banks, on the condition that they are permitted to pay interest on it, the Electronic Times reported exclusively. According to financial industry sources on Jan. 19, the Korea Federation of Banks (KFB) held a private briefing on Jan. 15 for its members, including major commercial banks, to coordinate a response on the matter. Discussions reportedly focused on a single, bank-centric stablecoin issuance model and the proposal to allow interest payments under that framework. The meeting was part of an interim review of a research project on won-backed stablecoins commissioned by the KFB from McKinsey & Company. The move is interpreted as a strategic effort by the banking industry to secure influence from the initial stages of regulatory design, as the South Korean government's enactment of the Digital Asset Basic Act approaches.