South Korea’s Democratic Party launches Digital Assets Committee, highlights stablecoins as key election issue

• Digital Assets Committee to Discuss Stablecoins in Upcoming Elections
• South Korea’s central bank claims control over stablecoins
• Cryptocurrency regulation is a political and economic priority

South Korea’s Democratic Party recently established a Digital Assets Committee, making a direct commitment to include discussions on cryptocurrency regulation in its electoral agenda ahead of the June presidential election. The group’s official debut took place at the National Assembly Members’ Hall in Seoul and marks digitalization as a focal point of political debate.

The purpose of the new committee is to build a robust regulatory framework for digital assets, with special attention to the Phase 2 Bill, which addresses basic legislation for the sector. Representative Min Byeong-deok, chairman of the committee, said:

“The goal is to make the Digital Assets Committee directly subordinate to the president so that it has expertise and can implement real policies.”

The group is comprised of two main fronts: one focused on promoting South Korea's leadership in digital transformation and the other responsible for shaping the regulatory environment. In addition, subcommittees will divide tasks such as user protection and industry incentives, with representatives from both the public and private sectors — including exchange players and blockchain companies.

Stablecoins were highlighted at the inaugural meeting. The agenda reflects the recent political attention to the topic, especially due to the stance of candidate Lee Jae-myung, who supports a stablecoin pegged to the won, and the caution of competitors after incidents such as the collapse of Terra-Luna.

“The debate revolves around whether stablecoins should be subject to licensing or reporting, and whether regulation should be the responsibility of the Bank of Korea or the Financial Services Commission,” said Min. The committee is seeking to find a balance that expands the market while protecting investors.

South Korea’s central bank insists on leading the regulation of stablecoins, justifying it with the argument of monetary policy security. The fear is that the lack of clarity will encourage companies and capital to flee abroad, as warned by Yoon Yeo-jun, a member of the campaign. The clash unfolds amid the central agenda of the election: combining economic development with protection for those who invest in cryptocurrencies.