With the government aiming to complete digital asset legislation within this year, the ruling Democratic Party is also pushing to submit a government-party package in September. Coordination remains on key issues, including reshuffling the party's digital asset task force and the issuance structure for won-based stablecoins, making it unclear whether legislation will gain real momentum.

Yoo Young-jun (유영준), director-general for digital finance policy at the Financial Services Commission, said at the "Korea Strategic Economy Forum" held on July 21 at Lotte Hotel in Seoul that he would swiftly wrap up stablecoin legislation in the near term.

Yoo said the bill would lay out a basic framework that includes the classification and definition of virtual assets, rules governing operators' conduct, and regulations to create a fair and efficient market and protect users. He added that matters related to the issuance and distribution of stablecoins would, of course, be included.

With the FSC publicly stating its will to legislate, the government's plan to process the bill within this year has also become more concrete. Koo Yun-cheol (구윤철), deputy prime minister for economic affairs and minister of finance and economy, said at the same forum that he would prepare a plan for AI commerce demonstrations using a regulatory sandbox.

The government earlier included, in its "2026 Economic Growth Strategy" announced on July 14, second-half tasks to subdivide the digital asset industry, establish a system to regulate business conduct, and build a legal foundation to institutionalise stablecoins.

Lee Eok-won (이억원), chair of the Financial Services Commission, also reported at a second-half work briefing held on July 15 at the Blue House State Guest House under the chairmanship of President Lee Jae-myung (이재명) that he would complete digital asset legislation within this year.

Tasks also include institutionalising the issuance and distribution of stablecoins and strengthening anti-money laundering rules to respond to money-laundering crimes using digital assets.

The ruling Democratic Party's separate digital asset task force is set to be reconstituted after the selection of the new leadership.

Park Min-kyu (박민규), a Democratic Party lawmaker, said at a digital asset-related seminar held the same day that the party would reconstitute the task force after an Aug. 17 national convention and the appointment of a policy committee chief are completed. He said the party then plans to consult with the government and push to submit a joint package in September.

Democratic Party members of the National Assembly's Political Affairs Committee recently discussed the Digital Asset Framework Act at a closed-door briefing attended by Chair Lee and Lee Chan-jin (이찬진), head of the Financial Supervisory Service. Park Sang-hyeok (박상혁), a Democratic Party lawmaker, said the committee's bill review subcommittee would meet at least twice a month in the second half and hold government-party consultations by issue.

The biggest issue in processing the bill is who will issue won-based stablecoins. A plan to first allow consortia in which banks hold a majority stake has advantages for managing reserve assets and financial stability, but opponents say it could limit participation by fintech firms and non-bank financial institutions.

Detailed design is also needed for licensing requirements for stablecoin issuers, how reserve assets are kept and managed, users' redemption rights, and a division of roles between the FSC and the Bank of Korea. It must also be decided how to regulate the domestic distribution of stablecoins issued overseas.

A proposal to limit controlling shareholders' stakes in digital asset exchanges is also disputed. In discussions, a plan to cap a single person's exchange stake at around 15 to 20 percent was raised, but views differ over the impact on existing shareholders' property rights and on domestic exchanges' ability to attract investment.

The National Assembly has already passed in January amendments to the Electronic Securities Act and the Capital Markets Act to introduce token securities. As a result, among real-world assets, securities-type products will be handled under the token securities system, and work is needed under the Digital Asset Framework Act to clearly define the boundary with non-securities digital assets.

The government and the Democratic Party agree on the direction of passing legislation within this year, but there is not much time left until the bill passes. For the Political Affairs Committee to secure a review schedule for passage this year, the party task force must be reconstituted after August and the September submission of a joint package must proceed as planned.

Park said, "As soon as the selection of the new leadership and the appointment of the policy committee chief are completed, we will reconstitute the Democratic Party's digital asset task force and, after consultations with the government, push for submission in September." He added, "We will pursue passage of the bill in the second half of this year as the top priority task."