South Korea is on the verge of setting clear rules for stablecoins. Lawmakers are moving fast. If passed, the Digital Asset Innovation Act could reshape how people pay for goods and services. It will also test the strength of banks and card companies.
The move comes as Democratic Party members on the National Assembly’s Political Affairs Committee prepare to roll out the bill next month. It aims to define stablecoins as “value-stable digital assets” and to lay down clear ground rules.
Card companies are already coping with a rising loan default rate of 1.93% in Q1, nearly brushing against the 2% danger mark. Three of the biggest firms—KB Kookmin, Hana, and BC Card—have already passed 2% this year. Those figures point to trouble if some transactions shift to tokens.
The Bank of Korea isn’t sold on stablecoins. It has urged caution and warned that digital tokens might hurt the banking sector. If people start using stablecoins for daily spending, banks could lose fees and deposits.
According to the central bank, that could undercut commercial banking profits. Banks may have to rethink their plans or build their own digital services to keep customers.
While banks and card issuers fret, tech giants are lining up. Naver and Kakao have been working on blockchain projects for years. They see a chance to plug a won-backed token into their apps and services.
Hyundai HT and Hyundai Mobis are also watching closely. Other names on the list include Kocom, MediaZen, Kaon Media, and Bridgetec. Analysts suggest that a Naver stablecoin, linked with web3 services or even the Line chat app in Japan, could open new markets.
Featured image from Unsplash, chart from TradingView
