Korea Exchange (KRX) Chairman Jeong Eun-bo issued a stark warning on Tuesday, urging South Korea to accelerate discussions on stablecoin adoption or risk losing its capital markets to global decentralized finance (DeFi) competitors.
Speaking at a foreign press briefing at the Korea Press Center in central Seoul, Jeong said, “To avoid falling behind the global decentralized finance trend, discussions on introducing stablecoins must advance,” adding that he hopes “various transactions utilizing stablecoins can be introduced in Korea’s capital markets as well.”
His remarks gained additional weight as the Democratic Party of Korea held a seminar on the Digital Asset Framework Act — the second-stage legislation covering stablecoins — at the National Assembly later that afternoon, marking the formal start of legislative deliberations.
Jeong specifically pointed to overseas examples: Robinhood and Kraken already offer 24-hour trading of tokenized Nvidia and Tesla shares, while Nasdaq plans to launch tokenized stock trading this October.
“From the exchange’s perspective, stablecoin discussions need to progress so we don’t fall behind the global DeFi trend,” Jeong said. “If we fail to position ourselves as a global premium market, attract overseas investor liquidity, and redefine the exchange’s role for the DeFi era, it will be difficult to guarantee the medium-to-long-term survival of our capital markets.” He emphasized that with blockchain-based digitization accelerating rapidly, there is no guarantee that Korea’s capital markets and the KRX will exist in their current form 10 to 20 years from now.
Democratic Party Holds First Digital Asset Seminar After Local Elections
Later that afternoon, lawmakers Ahn Do-geol and Lee Kang-il of the Democratic Party hosted a seminar at the National Assembly Members’ Office Building titled “Global Digital Asset Institutionalization Trends and Korea’s Legislative Direction.” The event marked the first National Assembly seminar on digital asset legislation since the June local elections, and the first time global blockchain firm Solana visited Korea for a public event with Democratic Party lawmakers.
Miller Whitehouse-Levine, CEO of the Solana Policy Institute, presented on “Key U.S. Digital Asset Legislative Trends and Governance Changes,” while Chris Montagano, Chief Legal Officer of Solana-based decentralized exchange Orca, addressed “Legal Requirements and Cases for U.S. Institutional Finance Entering Digital Asset Markets.” Panelists included Ahn Soo-hyun, Dean of Hankuk University of Foreign Studies Law School; Kim Hyo-bong, attorney at Bae, Kim & Lee; Kim Yoon-kyung, professor at Incheon National University; Lee Yong-jae, head of digital asset business at Mirae Asset Securities; Oh Jong-wook, CEO of Wavebridge; and Han Sang-hyung, director at Vaisel Standard.
Rep. Ahn Do-geol said, “The Democratic Party is preparing so that the Digital Asset Framework Act can be discussed with urgency in the second half of the National Assembly,” adding that “related systems including the Electronic Financial Transactions Act, Foreign Exchange Transactions Act, and Act on Reporting and Using Specified Financial Transaction Information must also be overhauled.”
Legislative Delays and Key Issues
The Digital Asset Framework Act covering stablecoins was originally slated for legislative action in the first quarter of this year. The Ministry of Economy and Finance and the Financial Services Commission reported it as a national policy task to President Lee Jae-myung in January, but discussions were repeatedly postponed due to the outbreak of conflict between the U.S. and Iran on February 28, the June local elections, and delays in forming the National Policy Committee after May.
Eight stablecoin-related bills are currently pending in the National Assembly, including comprehensive digital asset bills from Democratic Party lawmakers Min Byung-duk, Lee Kang-il, and Park Sang-hyuk, as well as People Power Party Rep. Kim Jae-seop; stablecoin-specific bills from Democratic Party Reps. Ahn Do-geol and Kim Hyun-jung, and People Power Party Rep. Kim Eun-hye; and a Virtual Asset Framework Act proposed by People Power Party Rep. Kim Sung-won on March 9.
Kim Jong-hyun, chairman of the Korea Fintech Industry Association, which co-hosted the seminar with Tiger Research, told Edaily: “What the industry is most interested in right now is the swift implementation of the Digital Asset Framework Act. We will present a balanced approach to prevent discussions from devolving into extreme permissive-versus-prohibitive positions, and convey on-the-ground voices to the National Assembly and authorities so legislation can proceed with urgency.”
Prime Minister nominee Han Sung-sook is scheduled to testify at her confirmation hearing on June 25-26, where she is expected to outline her stance on economic policy. Attention is focused on the government’s position regarding the legislative timeline for the Digital Asset Framework Act, which will affect over 10 million virtual asset investors in South Korea.
Global Trends and Challenges for Korea’s Capital Markets
The overseas cases cited by Chairman Jeong illustrate the accelerating digital transformation of traditional exchanges. Robinhood and Kraken already operate 24-hour markets through tokenized stock trading, and Nasdaq is set to fully enter the space this October. In this landscape, stablecoins are emerging as critical infrastructure bridging fiat currencies and digital assets.
Jeong’s remarks reflect more than just industry opinion — they signal a sense of crisis from the head of the institution responsible for Korea’s core capital market infrastructure. Underlying his comments is the recognition that the exchange must evolve beyond a simple stock trading platform into a digital finance hub encompassing security token offerings (STOs) and stablecoin-based transactions.
Industry participants expect that passage of the Digital Asset Framework Act will establish the legal basis for issuing and circulating won-based stablecoins, bringing tokenized securities trading into the regulated system. However, observers note that without parallel revisions to the Electronic Financial Transactions Act, Foreign Exchange Transactions Act, and other related laws, effective institutionalization will remain difficult.