The ruling and opposition parties agreed to hold the National Policy Committee's Subcommittee on Bill Deliberation No. 1 (subcommittee) at the end of this month, but the likelihood that the phase-two digital asset law (Basic Act on Digital Assets) will be discussed is said to be low. The gap in positions has not been bridged not only between the ruling and opposition parties but also within the presidential office over the key issue of limiting majority shareholders' equity in digital asset exchanges.
According to the financial sector on the 20th, the ruling and opposition parties agreed to open the National Policy Committee subcommittee on bills on the 27th of this month. The Financial Services Commission also plans to attend. However, which bills will be introduced for discussion is still under negotiation and has not been finalized.
The Democratic Party of Korea initially planned to finalize the government's draft of the phase-two digital asset law through a party-government consultation last month, but the consultation was indefinitely postponed, citing the response to the U.S.-Iran war. Since then, the consultation has not been held to date, delaying the finalization of the government draft.
A ruling party official said, "The subcommittee is where the ruling and opposition parties pull back and forth over the government draft, but since the government draft itself has not come out, it is virtually impossible to hold discussions. On top of that, with the ruling party floor leader election in early May and the local elections in early June, the phase-two digital asset law is being pushed down the list of priorities."
The biggest sticking points in the phase-two digital asset law are "mandating a bank-centered won stablecoin consortium" and "limiting majority shareholders' equity in exchanges." While the bank-centered consortium requirement appears to be gaining acceptance, various opinions are being raised over the equity limits on majority shareholders.
An aide to a ruling party lawmaker on the National Policy Committee said, "The presidential office's secretariat wants a way to avoid constitutional controversy over limits on majority shareholders' equity, but the policy office is showing little movement."
Previously, the National Assembly Research Service twice said there are "potential constitutional issues" regarding the government's push to limit majority shareholders' equity in digital asset exchanges. Legal professionals, including a former Constitutional Court justice, have also voiced constitutional concerns. A ruling party official said, "For lawmakers, having a bill they introduced become entangled in a constitutional dispute is a significant dishonor and the top concern. Because of this, it is inevitable that they show a passive stance under the current circumstances."