South Korea's Democratic Party has proposed integrating tokenized real-world assets (RWA) and stablecoins into the country's legal framework through the draft Digital Assets Basic Act. The proposal mandates that issuers of tokenized RWA deposit underlying assets into trust accounts as per the Capital Markets Act. Stablecoins are to be classified as "payment instruments" under the Foreign Exchange Transaction Act, regulated by the foreign exchange authority without needing separate registration. Small-value stablecoin transactions will be exempt from foreign exchange reporting, while large-value transactions will remain regulated. The proposal also includes a ban on offering yields on idle stablecoin balances and requires the Financial Services Commission to set technical standards for stablecoin interoperability. This draft legislation is part of South Korea's second set of digital asset regulations, which has experienced delays, pushing its original 2025 launch date further back.