Opinion: South Korea's stablecoin business may be reorganized with a "banking alliance at its core".

[Viewpoint: South Korea's stablecoin business may be reorganized around a “banking alliance”] According to local information from the Bank of Korea (Central Bank of Korea), the number of stablecoin issuer license applications processed by the Hong Kong Monetary Authority (HKMA) since August of this year has fallen below expected levels. The HKMA stated that as of the end of September, only 36 institutions had applied. This number is even less than half of the 77 institutions that initially expressed interest. The Bank of Korea is also closely monitoring the case in Hong Kong. Because even in Hong Kong, where capital flow controls are relaxed and there is no principle of separation between finance and industry (“separation of finance and industry principle”), stablecoins must be managed under a strict regulatory framework, this situation will provide a more sufficient basis for the policy of the Bank of Korea. In line with this, there are views predicting that the domestic stablecoin business in South Korea is very likely to be reorganized with a “banking alliance at its core.” On the 20th, during the National Assembly's government audit meeting in South Korea, the Financial Services Commission and the Bank of Korea jointly expressed their position, stating that the issuance entity of the Korean won stablecoin should be an alliance centered around the banking industry. In response to the inquiry by Democratic Party member Yoo Dong-soo on whether a bank-participated alliance is more suitable when balancing innovation and stability, the Vice Chairman of the Financial Services Commission of Korea, Kwon Dae-young, stated that he “agrees with this view.” The Bank of Korea also emphasized in its business report that it “principally supports” this and pointed out that “it is necessary to issue (stablecoin) through a bank-centered alliance.”