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[Photo News] BOK–Fed talks on digital finance
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Korea Herald
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S. Korea, Britain set to hold 5th round of follow-up negotiations to improve FTA
South Korea and Britain were set to kick off a fresh round of follow-up negotiations aimed at upgrading their bilateral free trade agreement to further facilitate trade and investment between the two countries, Seoul's industry ministry said Monday. Trade delegations from the two countries were set to hold the fifth round of negotiations in Seoul from later in the day, seeking to ease regulations on product origins and introduce new rules in areas of supply chain and digital trade, according to the Ministry of Trade, Industry and Energy. The trade talks are scheduled to run through Friday. In this week's meeting, the countries will exchange their opinions on 16 areas, including services, investment, digital trade, product origin regulations and government procurement. Seoul and London implemented their bilateral FTA in 2021, following Britain's withdrawal from the European Union. The negotiations to modernize the trade agreement began in 2023. "Amid intensifying global trade protectionism, the importance of free trade agreements is growing every day," said Kwon Hye-jin, director general for FTA negotiations at the ministry. "By improving the Korea-Britain FTA, we hope the two countries can jointly respond to the global supply chain risk and expand cooperation in trade and investment in major sectors," she added. (Yonhap)
Korea Herald
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Budget shoppers crowd market
Shoppers browse affordable goods priced at 1,000 won (73 cents) at the Sunday Market in front of Pyounghwa Market, part of the Dongdaemun Wholesale Apparel Market, in Seoul on Sunday. The market has been attracting large crowds as high inflation and interest rates continue to strain domestic consumption. (Yonhap)
Korea Herald
a day ago
- Korea Herald
BOK calls for oversight body to regulate stablecoins
With talks around won-denominated stablecoins heating up, the Bank of Korea has proposed setting up a policy body to regulate the issuance of the digital payment instrument. In a recent submission to the policy planning committee under President Lee Jae Myung, the central bank suggested that any issuance of won-backed stablecoins should require consensus among relevant institutions, including the BOK itself. While the BOK had remained wary over adopting a won-backed stablecoin, the committee has reportedly been pressuring the BOK to incorporate the digital asset. 'A pan-governmental regulatory response is necessary,' the BOK stated. 'A policy body consisting of relevant authorities should be considered.' The BOK cited the Stablecoin Certification and Review Committee under the US Genius Act as a precedent to support its stance. The bill, passed by the US Senate, stipulates that only deposit-taking institutions, or simply banking entities, approved by the Federal Reserve may issue stablecoins. To ensure a thorough vetting process, public companies that are not primarily engaged in financial services, or non-banking entities, should obtain unanimous approval from the committee to issue stablecoins. The proposal marks a turn from the BOK's previous stance on stablecoins. The central bank had touted its pilot project for a central bank digital currency as a state-led alternative to private stablecoins, repeatedly citing concerns against the payment instrument in terms of operating monetary policy and foreign exchange rules. But it recently backed down, putting the pilot test for tokenized deposit on a halt, citing 'regulatory uncertainty.' Though the two digital currencies are not mutually exclusive, the growing support for stablecoins could cast doubt on the CBDC's role in digital payment landscape. 'Given this new demand, we definitely have to recalibrate the plan,' BOK Gov. Rhee Chang-yong said in a media interview earlier this month, referring to the momentum building up for won-denominated stablecoins.
