South Korean Lawmaker Proposes 34% Fintech Stake Requirement for Won Stablecoin Issuers

Democratic Party lawmaker Ahn Do-geol has proposed a governance framework for won-denominated stablecoin issuers that would require fintech companies to hold a 34% stake, according to a report from Decenter. Speaking at an event held at Hashed Lounge on June 23, Ahn outlined a model designed to balance innovation with financial stability.

A Hybrid Governance Model for Stablecoins

Under the proposal, a consortium of banks would own more than 50% of shares in a stablecoin issuer, ensuring a foundation of institutional stability. Fintech firms, meanwhile, would hold a 34% stake and be granted management rights, allowing them to drive technological development and operational efficiency. The remaining shares would be allocated to other stakeholders.

This structure extends a previous plan from South Korea’s Financial Services Commission (FSC), which allowed technology companies to become the largest shareholders even when banks hold a majority stake of 50% plus one share. Ahn’s proposal formalizes the fintech role by setting a specific ownership threshold.

Why This Matters for South Korea’s Crypto Landscape

South Korea is one of the most active cryptocurrency markets globally, yet its regulatory framework for stablecoins remains under development. The proposed governance model addresses a key tension: how to maintain the trust and stability associated with traditional banking while leveraging the agility of fintech firms.

If adopted, the model could set a precedent for other jurisdictions grappling with similar regulatory challenges. Won-denominated stablecoins would likely be used for domestic payments, remittances, and as a bridge between traditional finance and digital asset markets. The involvement of both banks and fintechs could enhance consumer confidence and reduce the risk of issuer insolvency.

Implications for Fintechs and Banks

For fintech companies, the 34% stake requirement provides a clear path to influence governance and operations, but it also imposes a significant capital commitment. Banks, by retaining majority ownership, would bear primary responsibility for solvency and regulatory compliance. The model effectively creates a public-private partnership structure for digital currency issuance.

Industry observers note that the proposal still requires legislative approval and may face revisions. However, it signals that South Korean policymakers are actively seeking a middle ground between financial conservatism and technological progress.

Conclusion

Ahn Do-geol’s proposal represents a concrete step toward establishing a regulatory framework for won stablecoins in South Korea. By mandating a 34% fintech stake alongside bank majority ownership, the model aims to combine stability with innovation. The coming months will determine whether this governance structure gains political traction and becomes law, potentially shaping the future of digital payments in one of Asia’s most dynamic economies.

FAQs

Q1: What is the proposed fintech stake in won stablecoin issuers?
A: Democratic Party lawmaker Ahn Do-geol has proposed that fintech companies hold a 34% stake in issuers of won-denominated stablecoins, with banks owning over 50% to ensure stability.

Q2: How does this proposal differ from the FSC’s existing plan?
A: The FSC previously allowed tech companies to be the largest shareholders even when banks hold a majority. Ahn’s proposal formalizes a specific 34% fintech ownership threshold and grants management rights to fintechs.

Q3: Why is this governance model significant?
A: It attempts to balance the stability of traditional banking with the innovation of fintech, potentially setting a regulatory precedent for stablecoin issuance in South Korea and influencing global discussions on digital currency governance.