South Korea's Financial Services Commission has set November 2026 as the target date for the National Assembly subcommittee review of the Digital Asset Framework Act, rejecting claims of legislative delays. According to Seo Na yoon, head of the FSC's virtual asset division, speaking at a National Assembly seminar on September 22, the regulator and lawmakers are moving in the same direction on legislation covering digital asset issuance and distribution, including stablecoins. Ten digital asset and stablecoin bills are currently pending in the National Assembly, giving lawmakers existing proposals to work from before the government completes its version. Seo emphasized that personnel changes within the FSC would not alter the legislative timetable, stating "A change in the responsible official cannot cause a delay in the schedule."
South Korea has approved a pilot allowing public officials to pay government operating expenses using blockchain-based deposit tokens instead of physical government cards. According to The Chosun Daily, the Ministry of Science and ICT approved the project during the 45th ICT Regulatory Sandbox Review Committee meeting held on September 21, with the ministry announcing the decision a day later. The blockchain-based government fund execution project was among nine cases granted regulatory exemptions by the committee, allowing officials to make eligible payments by scanning QR codes on smartphones and using deposit tokens connected to the Bank of Korea's digital currency infrastructure. Six banks will participate in the government payment trial, including KB Kookmin Bank, NH NongHyup Bank, Shinhan Bank, Woori Bank, Industrial Bank of Korea and Hana Bank.
The deposit tokens form part of Project Hangang, the Bank of Korea's blockchain-based digital money program that uses a two-layer structure separating central bank settlement from consumer payments. Under the system, commercial banks issue deposit tokens representing bank deposits while the Bank of Korea's wholesale central bank digital currency is used for settlement between financial institutions. According to The Chosun Daily, transactions made with the tokens are processed through blockchain-based infrastructure, allowing payment and settlement to occur simultaneously. The tokens can be programmed to block purchases in restricted categories, with items or business categories that are not permitted under government expense rules designated in advance to prevent deposit tokens from being used for restricted purchases. The Ministry of Science and ICT expects the structure to make government spending easier to verify because payment records are processed through the blockchain-based system.
The government expense pilot is part of South Korea's broader infrastructure development for deposit tokens across commercial payment networks. The Ministry of Science and ICT and the Korea Internet & Security Agency launched a 9.6 billion won payment project in July to connect Project Hangang with existing payment systems. As reported by The Chosun Daily, nine commercial banks, eight payment companies and two large merchants joined the program, which is led by the Korea Financial Telecommunications and Clearings Institute. The project is designed to connect deposit token transactions with current payment infrastructure instead of requiring merchants to replace existing payment terminals. Participating banks can provide token wallets while merchants continue processing transactions through systems already installed at their businesses, with lower processing costs for small businesses being examined under the program.
Stablecoin issuer eligibility has remained one of the central issues under discussion in South Korea's second stage crypto legislation. The Bank of Korea has supported a bank-led structure for won denominated stablecoins, citing possible effects on monetary policy, payments and financial stability. In July, the central bank reaffirmed its bank-led model as policymakers continued negotiations over the second stage legislation. U.S. regulation has added pressure to South Korea's timetable, with Min noting that 200 stablecoins are being prepared in the U.S. market and suggesting that even a few dozen approved after the GENIUS Act's January 18, 2027 effective date could significantly impact South Korea's market. The FSC has placed digital asset legislation within its policy plans for the second half of 2026, including stablecoin legislation and crypto ETFs alongside tokenized government bonds and cross-border stablecoin transactions.
