The Democratic Party of Korea has formed a Committee for the Development of Digital Assets.

The committee will be chaired by the chairman of the Democratic Party, Min Byung-duk (Min Byung-duk), Congressman Kim Byung-gi (Kim Byung-gi), who will become an advise, and the former governor of South Gyeongsang, Kim Jung-woo (Kim Jung-woo), who will serve as the senior vice-chairman. On May 13, the committee already held its first meeting in Seoul.

The committee was established to clarify the rules regulating cryptocurrencies in South Korea and to reflect them in local legislation. Currently, Korean regulations do not allow for the full potential of digital assets to be realized, and the uncertainty in the regulation of the industry forces crypto companies and investors to move abroad in search of more favorable conditions for working with digital assets. Therefore, the committee will work on creating laws that better meet the needs of crypto investors.

The target group will consist of two subcommittees: the Committee on Industrial Innovations and Development, and the Committee on Policy and Support for Institutional Investors. The first will focus on developing strategies for industrial innovations, where digital assets may be used. The second will concentrate directly on developing regulatory rules for working with crypto assets. These two subcommittees will also be "split" into divisions: User Protection Department, Digital Asset Development Department, and External Cooperation Department.

The committee will also focus on the implementation of a stablecoin backed by the Korean won, the abolition of restrictions on banking services for crypto companies — the so-called "One exchange, one bank" rule, and the expansion of South Korea's presence in the global cryptocurrency market.

This initiative of the Democratic Party was implemented in anticipation of the upcoming presidential elections in the country, which will take place on June 3, 2025. Initially, the elections were scheduled for March 2027, however, they will occur two years earlier due to the impeachment of President Yoon Suk Yeol (Yoon Suk Yeol).

Recently, South Korean presidential candidate Kim Moon-soo (Kim Moon-soo) promised that if he wins the election, he will allow pension funds to invest in Bitcoin. Meanwhile, the Bank of Korea plans to tighten regulation of stablecoins pegged to the South Korean won.