South Korean Stock Exchange ‘Exploring’ Crypto Spot ETF Approvals
The Korea Exchange (KOSDAQ), the South Korean stock exchange, has announced that it is considering the approval of crypto spot ETFs in 2025. The Chairman of KOSDAQ, Jeong Eun-bo, made this statement during the 2025 Securities and Derivatives Market Opening Ceremony, and Financial Services Commission (FSC) Chairman Kim Byung-hwan was also present.
This announcement comes after a tumultuous end to 2024 in South Korea, with President Yoon Suk-yeol’s failed attempt to declare martial law causing chaos in the already sluggish KOSDAQ. As a result, many shareholders, both domestic and international, sold off their holdings, leading to talks of a stock market exodus.
Jeong emphasized the need for the stock market to explore new business avenues, including crypto ETFs, stating, “We will benchmark overseas cases for new business avenues such as crypto ETFs and explore new territory in the capital market.”
Kim’s presence at the event brought hope to South Korean companies eagerly waiting for permission to issue security tokens. Yoon had promised to prioritize changes to STO laws but has not followed through. Traditional financial companies and tech firms have already developed STO platforms in anticipation of approval, but the political turmoil and government issues have delayed progress.
However, the FSC is ready to take action, with discussions on crypto legislation being temporarily paused until the political situation stabilizes. Chairman Kim expressed the FSC’s commitment to institutionalizing STOs, diversifying the securities issuance and distribution system, and reorganizing the entire system to support comprehensive financial investment businesses.
Jeong acknowledged the difficulties faced by the capital market in the previous year and called for cooperation among lawmakers, the ruling People’s Power Party, and corporate stock market investors. He urged everyone to work together to make 2025 the year when both domestic and international investors return to the market.
Late last year, Jeong emphasized the need for regulators to remove obstacles to crypto adoption and advocated for the institutionalization of crypto in South Korea.
