South Korea weighs joint consultative body for won stablecoin legislation

South Korea’s financial authorities plan to step up coordination with the Bank of Korea and the Ministry of Economy and Finance as they prepare legislation to establish a legal framework for won-denominated stablecoins, News1 reported. Speaking at a forum on the future governance and market ecosystem of won stablecoins through overseas case studies, hosted today by Democratic Party lawmaker Kim Hyun-jung, Yoo Won-gyu, an official in the virtual asset division at South Korea’s Financial Services Commission, said there appears to be broad consensus on the need for a consultative body involving the FSC, the finance ministry and the central bank. Yoo said authorities are discussing legislation in a way that would allow such a body to be formed and related policies to be closely coordinated. Yoo added that authorities would support drafting the bill with safeguards including bankruptcy remoteness, so customer assets are managed separately and customers’ ability to recover funds is not affected even if an institution runs into problems.