Latest news with #MinByoung-dug
Korea Herald
5 days ago
- Business
- Korea Herald
Promoting sustainable, innovative growth in local industries
The Korea Herald republishes a weekly legislative report by local law firm DR & AJU LLC to provide the latest information on bills approved, proposed, pending and set to be promulgated. — Ed. Proposed Bill: Act on the Establishment and Operation of the Southeastern Regional Industrial Investment Corporation Proposed by Rep. Min Byoung-dug (Democratic Party of Korea) ● This bill would establish the Southeastern Regional Industrial Investment Corporation to boost industrial competitiveness and support the sustainable growth of local businesses, with approximately 3 trillion won ($2.2 billion) in capital contributed by public institutions. Proposed Bill: Partial Amendment to the Financial Investment Services and Capital Markets Act Proposed by Rep. Cha Gyu-geun (Rebuilding Korea Party) and Rep. Kim Hyun-jung (Democratic Party of Korea) ● The current Act requires investors holding 5 percent or more of a listed company's shares, or making a 1 percentage point change in shareholding thereafter, to report their shareholding and purpose to financial authorities if the intent is to influence management. This bill would narrow the broad phrase 'to influence management' to 'to substantially influence effective control,' aiming to protect minority shareholders' voting rights. Pending Bill: Special Act on Strengthening Competitiveness and Promoting Innovative Growth in the Semiconductor Industry Proposed by Rep. Lee Chul-gyu (People Power Party) ● This bill proposes allowing swift infrastructure support and exempting research and development workers in the semiconductor industry from the 52-hour weekly work limit with mutual agreement, aiming to enhance the industry's global competitiveness. Promulgated Bill: Special Act on Underground Safety Management Competent Authority: Ministry of Land, Infrastructure and Transport ● Effective May 27, the amended law will authorize the Minister of Land, Infrastructure and Transport to conduct onsite inspections to assess the safety management of underground facilities and surrounding ground in areas at risk of ground subsidence Administrative Announcement: Partial Amendment to the Enforcement Decree of the Personal Information Protection Act ● In line with the recent amendment to the Personal Information Protection Act regarding the domestic agent system, this draft amendment specifies the scope of entities subject to the domestic agent requirement. For queries about the bills, contact cr@ koreadherald@
Business Mayor
26-05-2025
- Business
- Business Mayor
South Korean Democrats Push For Faster KRW Stablecoin Adoption
Under its larger goal to strengthen the nation's financial independence and guarantee a competitive edge in the developing digital economy, South Korea's Democratic Party is intensifying efforts to fast-track the adoption of a Korean won-backed stablecoin (KRW stablecoin). The Democratic Party cautions against the dangers involved in depending on foreign digital currencies for local transactions, as international stablecoins like USDT and USDC are becoming more and more popular in home markets. Chairing the Democratic Party's Digital Asset Committee, Min Byoung-dug has been actively stressing the strategic relevance of stablecoins. He contends that these digital assets might be quite important in transforming payments and protecting South Korea's financial sovereignty. Min said, stressing their ability to change financial services, 'Stablecoins are no less important than artificial intelligence or semiconductors.' This drive is obviously urgent since South Korea's economy is closely linked with the world financial system, and unbridled capital outflows via stablecoin channels could compromise economic stability. Mostly via foreign stablecoins, nearly ₩26.9 trillion exited the nation in the first quarter of 2025 alone. Such a situation begs major questions concerning monetary management and capital flight. Economic Sovereignty And Global Competitiveness Advocates of a KRW stablecoin contend that, whilst maintaining financial flows inside the nation, a national digital currency might offer a safe and quick way of completing transactions. This will not only boost the nearby economy but also help to lessen reliance on stablecoins with dollar values that rule crypto markets. The CEO of Crypton, a blockchain company, Kim Jong-seung, reflected on these worries. He cautioned that depending too much on stablecoins produced abroad may compromise South Korea's monetary sovereignty and expose the country to outside economic pressure. Kim suggested that a KRW stablecoin supported by government bonds from South Korea may provide a dependable substitute, therefore guaranteeing stability and confidence among consumers. Such a step would also help South Korea to match other nations investigating stablecoins and central bank digital currencies (CBDCs) as a means of upgrading financial systems. A native stablecoin might enable South Korea to land a leading role in Asia's growing crypto scene as rivalry in the digital currency market gets fiercer. Public Interest and Obstacles to Regulation The Democratic Party's plan appeals to a public surge in interest in digital assets. According to surveys, more than thirty per cent of South Koreans have made investments in cryptocurrencies; trading activity on local exchanges matches that of conventional stock markets. This wave of interest offers rich ground for the launch of a KRW stablecoin, which would probably be highly sought by tech-savvy consumers and companies looking for simplified payment options. Still, technical and legal obstacles abound. Already, the Bank of Korea is running a 100,000 citizen pilot program to evaluate the feasibility of a central bank digital currency in retail and wholesale uses. Although this CBDC is not a stablecoin specifically, it shows the central bank's openness to digital currency innovation, a promising indication for the Democratic Party's quest.
Korea Herald
22-05-2025
- Business
- Korea Herald
[Editorial] Korea's crypto gambit
Democratic Party's hasty push for crypto politics must not outpace policy prudence Crypto is crashing the campaign trail. With South Korea's presidential election on June 3 fast approaching, one of the more unlikely issues to seize the spotlight is stablecoins — digital tokens tied to real-world currencies. At the forefront is the main opposition Democratic Party of Korea, which has positioned won-backed stablecoins as a flagship of its digital finance agenda. Advocates argue they will preserve monetary sovereignty and foster innovation. Yet the speed with which this intricate issue has been politicized raises critical concerns — not only about financial technology, but about the maturity of political leadership. The national spotlight on stablecoins sharpened following the first televised presidential debate on May 18. The Democratic Party's nominee, Lee Jae-myung, declared that Korea must 'build a won-based stablecoin market' to avert digital exclusion and protect national assets. Party lawmakers quickly echoed that urgency. Rep. Min Byoung-dug warned that South Korea risks being sidelined by the rise of dollar-backed tokens and called for the development of a domestic alternative to ensure global competitiveness. Rep. Kwon Chil-seung added that such a system could buffer small enterprises against exchange-rate volatility, long a barrier to cross-border capital movement. The argument is, at least in part, compelling. As the United States advances the Genius Act — a legislative effort to formalize dollar-denominated stablecoins — South Korean policymakers are understandably wary of losing ground in a race that could define the future of sovereign finance. For the Democratic Party, stablecoins serve as a digital hedge against the encroaching influence of the dollar in an increasingly dematerialized financial system. From this perspective, inaction looks less like prudence and more like surrender. But enthusiasm has met resistance. Lee Jun-seok, the candidate of the minor conservative New Reform Party, has raised pointed questions about the Democratic Party's readiness. He cited the 2022 collapse of the Terra-Luna project, whose won-pegged stablecoin, KRT, lacked the collateral backing required for price stability. Its dramatic failure erased billions in investor value and left regulators scrambling. 'There's no explanation for collateral, market risks or safeguards against past failures,' Lee cautioned, accusing the Democrats of cloaking risky ideas in techno-utopian language. Indeed, the Democratic Party appears to be charting a path toward stablecoin adoption without a road map for regulation. When pressed in the debate, Lee Jae-myung vaguely assured that a one-to-one reserve ratio would preserve stability — but offered little clarity on how those reserves would be verified, how illicit transactions would be deterred, or which institutions would be accountable. Meanwhile, the Bank of Korea has taken a firm stance: If won-based stablecoins are to enter circulation, the central bank must have direct authority over their approval and oversight. Anything less, it warns, risks eroding the effectiveness of monetary policy, destabilizing the broader financial system and encouraging regulatory arbitrage. The shadow of Terra-Luna still hangs heavy, and the consequences of repeating that mistake could be far-reaching. None of this is to dismiss the utility of tokenized assets. In theory, stablecoins could lower transaction costs, streamline payments and widen access to financial services. But elections are a poor moment to experiment with systems that even central banks approach warily. Political campaigns reward bold ideas, not careful vetting. What South Korea needs now is the latter. The country has already paid once for its crypto exuberance. There is no shame in caution, only in forgetting. Stablecoins may yet have a role to play in South Korea's financial architecture. But that role must be earned, not assumed — and certainly not imposed on the fly, mid-campaign, without a safety net. The danger is not that Korea is too late to the party. It is that it arrives too soon, and with too little preparation.
