South Korea

은행권 “스테이블코인 이자 지급 허용 여부” 논의 개시

ET News | Local Language | News | Jan. 21, 2026 | Regulation

The banking sector has initiated discussions on the possibility of allowing interest payments on won-denominated stablecoins, specifically under a bank-led issuance model. This move is seen as an effort to preempt user shifts and secure liquidity in response to competitive pressures on traditional deposits. The Banks Association recently held a closed briefing with major commercial banks to coordinate a joint stance on won-stablecoins, focusing on a single bank-centered issuance model and the potential for interest payments. This was part of an interim review of a research project by McKinsey & Company, with a final report expected by early February.

Amid impending government legislation on the Digital Assets Basic Law, banks are seeking to influence regulatory design early on. The government draft favors a bank-focused issuance model, but political disagreements remain, with the Financial Services Commission proposing issuance by consortiums holding a majority of bank equity. The Democratic Party opposes this, arguing it could stifle competition and innovation. The ruling party’s proposal, expected on January 20, will address who may issue won stablecoins and the permissibility of interest payments.

Banks see allowing interest payments as a way to incentivize holding stablecoins and create a lock-in effect, protecting traditional deposit functions. The concern is that if tech companies lead stablecoin expansion, these tokens might become deposit substitutes, weakening banks’ funding base. However, opposition exists from non-bank sectors, especially big tech and fintech companies, who argue that interest-bearing bank-issued stablecoins could resemble tokenized government bonds and deviate from the stablecoin definition.

Internationally, the U.S. "GENIUS Act" prohibits stablecoin issuers from paying interest, aiming to keep stablecoins as neutral infrastructure. This contrasts with the banking sector's current push in South Korea, highlighting ongoing regulatory and market tensions over the future design and function of stablecoins.

Joongang Ilbo | English | News | Jan. 21, 2026 | UndeterminedEmployment

Young Koreans are facing intensified economic pressure due to prolonged job searches and rising housing costs, according to a report by the Bank of Korea (BOK) released on January 19, 2026. Companies increasingly favor experienced workers and use rolling recruitment amid sluggish economic growth, causing young job seekers to spend more time unemployed early in their careers. The report highlights that unemployment duration significantly affects future employment prospects and wages, with a one-year unemployment period giving a 66.1 percent chance of securing regular employment within five years, dropping to 56.2 percent after three years. Each additional year of unemployment reduces real wages by 6.7 percent due to a lasting "scarring effect."

The report draws parallels between the current situation and Japan’s "employment ice age generation" during its economic stagnation in the 1990s and early 2000s. Rising housing costs compound these challenges for young adults, who often rent smaller, non-apartment units. A shortage of such units has led to significant rent increases and worsened housing conditions, with the share of young people living in substandard housing rising to 11.5 percent in 2023 from 5.6 percent in 2010. Additionally, a 1 percent increase in housing costs is estimated to reduce young people's total assets by 0.04 percent, while youth debt as a share of overall household debt jumped to 49.6 percent in 2024 from 23.5 percent in 2012.

BOK official Lee Jae-ho emphasized that these employment and housing issues are structural problems hindering South Korea’s long-term growth. He called for labor market reforms to reduce job polarization and for an expansion in the supply of small homes to address housing imbalances.

주병기 공정위원장 "쿠팡, 유출 보상을 영업에 활용…정말 화났다"

ZD Net Korea | Local Language | News | Jan. 21, 2026 | Corporate Corruption or Fraud

Chairman Joo Byung-ki of the Fair Trade Commission sharply criticized Coupang for its compensation plan following a personal information leak. He condemned the company for offering a compensation package consisting of 50,000 won in coupons, which was segmented across various Coupang services such as Coupang Eats, Coupang Travel, and Alluxe Beauty & Fashion. Chairman Joo argued that this approach was not a genuine apology or fair compensation but rather a tactic to draw users back into Coupang's platform, effectively using the incident for business gain.

Chairman Joo described Coupang's strategy as a deceptive business practice that locks customers into its ecosystem, calling it a failure on both legal grounds under the Fair Trade Act and corporate social responsibility. He emphasized the need for a regulatory framework specifically tailored to online platforms, signaling his determination to advance the Platform Act.

Beyond the compensation issue, Chairman Joo also raised concerns regarding Coupang's corporate ethics. He criticized the company for labor practices that violate workers' rights comparable to international standards, drawing parallels to past child labor controversies. Additionally, he condemned Coupang's alleged use of suppliers' sales data to develop private-brand products, labeling it predatory behavior that exploits suppliers and must be strictly sanctioned.