South Korean banks and financial groups are testing won-denominated stablecoins for payments, settlements, custody and remittances while lawmakers and regulators remain divided over issuance rules. President Lee Jae Myung made a won stablecoin framework a campaign pledge, but the Digital Asset Basic Act has not reached the National Assembly. The Financial Services Commission, South Korea's financial regulator, aims to submit the bill within September, while the ruling Democratic Party plans a public hearing and seeks passage as early as September or by year-end. Democratic Party lawmaker Ahn Do-geol, who proposed a stablecoin bill in July 2025, says early adoption is needed to prevent dollar-based stablecoins from dominating digital payments and weakening monetary-policy effectiveness. He estimates that replacing 30% of card payments with stablecoins could reduce annual merchant fees by up to 5.2 trillion won ($3.8 billion). Kakao Pay, KB Financial, Woori Bank and Shinhan Bank have advanced wallet, payment, remittance and compliance tests, including a roughly three-minute transfer to Vietnam with fees about 87% below conventional remittances. A September 15-16, 2026 daily roundup likewise reported that Korean financial groups were preparing won-denominated stablecoin services while rules remained unresolved. Disputes also cover exchange-share limits, reserve management and amendments to electronic-finance and foreign-exchange laws.