South Korea's Financial Services Commission (FSC) has failed to meet a December 10 deadline set by the ruling Democratic Party to propose regulations for won-pegged stablecoins. The FSC plans to release details of a bill called the Basic Digital Asset Act soon, rather than adhering to the original timeline. This delay is significant as the private sector is eager to launch KRW-pegged tokens, but currently, all cryptocurrency and stablecoin issuance is illegal in South Korea. The government believes that allowing stablecoin issuance could help the country compete with the US and Japan in the digital currency space. Tensions are high between the FSC, the Bank of Korea (BOK), and the government. The BOK opposes the idea of big tech companies issuing their own stablecoins, arguing it would weaken its control over monetary policy. The government is frustrated with the BOK's stance, which could complicate the regulatory landscape. A proposed compromise suggests that only consortia with a majority stake from domestic banks would be allowed to issue stablecoins, but the FSC disagrees, citing a lack of global precedents for such restrictions. The BOK is also pushing for the authority to veto stablecoin issuance approvals and to conduct inspections of issuers. The FSC, however, maintains that its approval processes alone should be sufficient, rejecting the need for additional powers for the BOK. This ongoing debate highlights the challenges South Korea faces in establishing a regulatory framework that balances innovation with financial stability.