South Korea is moving forward with legislation to regulate stablecoins pegged to the won, amid a regulatory dispute between the Financial Services Commission (FSC) and the Bank of Korea (BOK). The FSC plans to introduce a government-backed bill by the end of 2025, aiming to oversee licensing and exchanges, viewing stablecoins as virtual assets. In contrast, the BOK supports bank-led issuance to ensure financial stability, focusing on trust-based currency functions and risks such as depegging and capital outflows. The urgency for local stablecoin regulation is underscored by the significant trading volumes of USD-pegged stablecoins, which reached 56.95 trillion won in the first quarter of 2025. This highlights the market's dependence on foreign-pegged assets and the necessity for domestic alternatives.