South Korea is moving closer to a structured won-denominated stablecoin framework as ruling party lawmaker Kim Sang-hoon proposed a two-track issuance model, while payment gateway Danal became the first domestic payment firm to join the OpenUSD stablecoin consortium.
Kim Sang-hoon, chair of the People Power Party’s special committee on stock and digital asset value-up, outlined the plan in an interview with Edaily on Aug. 20 at the National Assembly Members’ Office Building in Yeouido. He supports a bank-centered stablecoin issuance model based on a “50%+1” rule, meaning banks would hold majority control of issuing entities to ensure conservative oversight and financial stability.
Under the proposed approach, banks would lead early-stage issuance of won stablecoins, while fintech companies would enter later to handle distribution and innovation. The lawmaker said this phased strategy aims to prevent volatility seen in unbacked cryptocurrencies while allowing the ecosystem to evolve. The proposal arrives as South Korea’s basic digital asset law remains stalled in the National Assembly, leaving the legal status of fiat-pegged stablecoins uncertain.
Meanwhile, Danal, a South Korean payment gateway provider, announced on Aug. 21 that it has joined the Open Standard consortium, a governance body backed by roughly 140 global companies including Visa and Mastercard. The consortium oversees OpenUSD (OUSD), a U.S. dollar-based stablecoin designed for digital fund settlement and transfers between institutions.
Danal’s membership marks the first time a domestic South Korean payment gateway has entered the OpenUSD ecosystem, positioning the company to explore stablecoin-based payment options for merchants and consumers. If integrated, OUSD payments could offer faster settlement and lower transaction fees compared with traditional banking rails, although regulatory approvals and technical integration are still pending.
The two developments highlight growing institutional interest in regulated stablecoins as a bridge between traditional finance and blockchain-based payments. South Korea’s financial regulators already require virtual asset service providers and payment firms to comply with anti-money laundering and know-your-customer obligations, and both the bank-led issuance model and Danal’s consortium membership are expected to align with those requirements.
Industry observers noted that a bank-led approach may slow stablecoin adoption because banks are traditionally risk-averse, while fintech firms may have to wait for the regulatory framework to mature before gaining a meaningful role.
