With the local elections wrapped up, work to form the National Assembly's power-sharing structure, which had been effectively on hold, is expected to pick up in earnest. In the financial sector, attention is on when key financial legislation tasks, whose discussions were delayed by the first-half political calendar, will reach the National Assembly's negotiating table.
According to political circles on the 8th, the National Assembly held a plenary session on the 5th and elected the leadership for the latter half of the term. Jo Jung-sik of the Democratic Party of Korea, in his sixth term, was elected speaker, and for the two deputy speaker posts allocated one each to the ruling and opposition parties, Nam In-soon of the Democratic Party of Korea, in her fourth term, and Park Deok-heum of the People Power Party, in his fourth term, were chosen. With the leadership formed, negotiations to allocate standing committee chair posts and appoint standing committee members are also expected to begin in earnest.
Once the power-sharing structure is finalized, financial legislation is also expected to gain speed. The area drawing the most attention is the Basic Act on Digital Assets. The Basic Act on Digital Assets centers on institutionalizing won-denominated stablecoins and establishing a regulatory framework for the virtual asset market. Proposals under discussion include limiting stablecoin issuance to banks or consortia in which a bank holds a majority of voting rights, and capping major shareholders' equity in virtual asset exchanges at 15% to 20%.
Legislating the special judicial police for people's livelihood financial crimes is also a task drawing attention in the financial sector. The financial authorities are pushing to establish a new unit within the Financial Supervisory Service dedicated to cracking down on illegal private lending crimes, separate from the existing capital market special judicial police. The aim is to strengthen enforcement against loans exceeding the statutory maximum interest rate of 20%, unregistered lending business operations, and illegal debt collection. Introducing the special judicial police requires amending the Act on the Duties of Judicial Police Officers, which needs National Assembly deliberation.
Amendments to the Act on Inclusive Finance for Low-income Households and the Act on Registration of Lending Business are also cited as key pending issues. The amendment to the Act on Inclusive Finance for Low-income Households centers on establishing a "Inclusive Finance Stabilization Fund" within the Korea INclusive Finance Agency (KINFA) and abolishing the sunset clause on financial companies' contributions to secure stable funding for policy-based inclusive finance products. The amendment to the Act on Registration of Lending Business introduces a licensing system for debt-purchasing collection businesses to prevent excessive and prolonged collections.
A bill to amend the Act on the Refund of Damage from Telecommunication-based Financial Fraud, which would strengthen relief for voice phishing victims, is also on the table. The core is to introduce a "no-fault liability system" under which financial companies compensate victims for losses regardless of negligence. The amendment stipulates that the compensation cap borne by financial companies be set in the range of 10 million won to 50 million won per case.
An industry official said, "In the second half, legislative discussions in the financial sector, including the Basic Act on Digital Assets, will get into full swing," but added, "However, the pace could vary depending on the National Assembly's schedule, including power-sharing negotiations and the parliamentary audit."