South Korea Digital Assets Market
The Korean government’s pro-innovation stance on digital assets and regulatory modernization is creating a more favorable environment for the adoption of blockchain finance and presents a strategic entry point for U.S.-based blockchain and fintech firms. Korean financial institutions are prioritizing infrastructure and services that ensure global interoperability, technological stability, and regulatory compliance. Against this backdrop, U.S.-based blockchain and fintech firms with proven regulatory expertise may find growing opportunities in Korea through local partnerships, regulatory sandbox participation, and alignment with the evolving policy framework. According to the Bank of Korea, as of end-2024, Korean individuals held approximately KRW 104 trillion ($80 billion) in digital assets, about 5% of national GDP, highlighting Korea’s significant footprint in Asia’s digital asset landscape. These developments merit close attention as Korea positions itself as a leading regulatory and innovation hub in the region.
On June 10, 2025, the Democratic Party of Korea introduced the General Act on Digital Assets to the National Assembly, marking a pivotal step in the institutionalization of the country’s digital assets market. This legislative initiative reflects the strong regulatory commitment of President Lee Jae-myung’s administration, which has prioritized the legalization of South Korean Won (KRW) denominated stablecoins and spot ETFs as core elements of its financial reform agenda. Following the bill’s submission, it is anticipated that at least two years will be required for the development of subordinate regulations and enforcement decrees, with full implementation likely by 2027.
The proposed legislation provides a comprehensive framework for Korea’s digital asset ecosystem, defining asset types by legal and economic characteristics, setting licensing and conduct standards for Virtual Asset Service Provider (VASPs), and outlining rules on issuance, circulation, disclosure, and unfair trading practices. In parallel, the Financial Services Commission (FSC) is developing a two-track regulatory approach distinguishing between security-type and non-security-type tokens, with additional legislation and regulatory sandbox programs under review for the latter. Meanwhile, the Bank of Korea has provisionally suspended its retail Central Bank Digital Currency (CBDC) program due to concerns over functional overlap with stablecoins and potential regulatory duplication.
In response to the anticipated legalization of KRW-backed stablecoins, major financial players – including KB Kookmin, Shinhan, Woori, NH Nonghyup, IBK, Suhyup, K-Bank, and IM Bank – are pursuing first-mover advantage by filing trademarks and joining consortia like the Open Blockchain & DID Association to form joint ventures. Non-bank institutions are also adapting, with Naver Financial unveiling plans to build a Web3-based online and offline payment network linked to its existing fintech ecosystem, aiming to bridge stablecoins with real-world commerce. Similarly, KakaoPay and Viva Republica (Toss) are realigning their strategies in preparation for the regulatory shift.
If you need more information, contact the U.S. Commercial Service Korea: Songmi Heo, commercial Specialist, Songmi.Heo@trade.gov. If you’re looking to make your first export sale or expand to additional markets, connect with your local U.S. Commercial Service in the United States to schedule an appointment for a consultation.