Financial Services Commission Vice Chairman Kwon Daeyoung: "Stablecoins Should Be Introduced in Line With International Standards, With Consumer Protection in Mind"

Attending the "Fintech and Digital Asset Venture Investment Forum" on the 24th
Vice Chairman Kwon: "We will create an investment ecosystem for small business owners through security tokens"
Participants call for swift revision of the Electronic Financial Transactions Act and institutionalization of stablecoins

On July 24, Kwon Daeyoung, Vice Chairman of the Financial Services Commission, stated, "The introduction of the Korean won stablecoin should be approached with caution to ensure international compatibility."

Participants of the "Venture Investment Forum for the Activation of Fintech and Digital Assets," hosted by the Korea Fintech Industry Association and the AI Digital Economy Finance Forum on the 24th at the Bankers' Hall in Jung-gu, Seoul, are taking a commemorative photo. In the front row, from the second person on the right to the left: Daeyoung Kwon, Vice Chairman of the Financial Services Commission; Geunju Lee, Chairman of the Korea Fintech Industry Association; Yuseok Seo, Chairman of the Korea Financial Investment Association. FinSanHyeop

Vice Chairman Kwon made these remarks while attending the "Venture Investment Forum for the Promotion of Fintech and Digital Assets," jointly hosted by the Korea Fintech Industry Association and the AI Digital Economy Finance Forum at the Bankers Club in Jung-gu, Seoul, on the same day.

He said, "The United States is also accelerating the introduction of stablecoins, and our government is doing the same." However, he added, "We must develop this sector in a balanced manner, considering alignment with global regulations, the impact on the system, and consumer protection."

Vice Chairman Kwon announced plans to establish an Integrated Information Center for Small Business Owners and Self-Employed (SDB) and to create an ecosystem where small business owners can receive investments through Security Token Offerings (STO).

He explained, "With STOs, small business owners will be able to receive investments and reduce the burden of principal and interest repayments."

Vice Chairman Kwon also called for the active use of AI technology to address the problem of voice phishing.

He said, "If I may make a suggestion, AI technology could be used to collect information on fraudulent bank accounts and proactively respond to recurring (criminal) patterns, thereby helping to solve social issues."

The forum was attended by more than 300 participants, including Vice Chairman Kwon; Lee Geunju, President of the Fintech Industry Association; Seo Yuseok, Chairman of the Korea Financial Investment Association; and Lee Junhee, Vice Chairman of the Korea Venture Capital Association. Lawmakers Park Chandae, Kang Junhyun, and Min Byungdeok of the Democratic Party of Korea also delivered video congratulatory messages, expressing their commitment to fostering fintech and the digital industry as well as revitalizing venture investment.

Chairman Seo stated, "If the Digital Asset Basic Act is passed along with the existing security token legislation, digital innovation in our financial markets will make significant progress." He added, "Institutionalizing security tokens and the Korean won stablecoin will allow stablecoins to become established as a means of payment and settlement in the domestic capital market, which can drive innovative changes in the securities issuance and distribution market."

Forum participants argued that the Electronic Financial Transactions Act should be converted to a negative regulatory system (where everything is permitted except explicitly prohibited) similar to those overseas. They stressed the urgent need for flexible legislation and regulatory reform to align with the era of open finance.

Lee Hanjin, attorney at Kim & Chang, said, "The current domestic framework for the Electronic Financial Transactions Act is outdated compared to global standards, and it is urgent to shift to a function-centered negative regulatory system (where everything is permitted except explicitly prohibited)."

Seo Byungyun, Director of DSRV Labs, presented ways to utilize the Korean won stablecoin based on examples from Singapore, Hong Kong, and other countries. He emphasized, "Stablecoins serve as the foundation of the digital asset financial ecosystem, and clear issuance standards and management systems must be established domestically as well."

A representative of the Fintech Industry Association stated, "Through this forum, we reaffirmed the need to establish an institutional foundation for the digital asset industry and to create a sound investment environment." The representative added, "The Fintech Industry Association and the AI Digital Economy Finance Forum will continue to propose effective policies and maintain public-private cooperation systems to drive market growth in the future."