KRX Chairman Warns South Korea Risks Falling Behind Without Crypto ETFs

The chairman of the Korea Exchange (KRX), Jung Eun-bo, has called for the introduction of cryptocurrency exchange-traded funds (ETFs) in South Korea to ensure the country remains competitive in global finance.

In a recent interview in Seoul, Jung said that South Korea, as the world’s third-largest real cryptocurrency trading country, risks falling behind if it delays crypto ETF adoption while other major markets advance.

He pointed to the United States, where both spot and futures Bitcoin ETFs are actively traded, as an example of how global financial hubs are embracing crypto investment products.

“Cryptocurrency represents a sector capable of generating new value in the financial industry […] We must not delay the introduction of cryptocurrency ETF trading,” Jung stated.

U.S. Market Features 20 Crypto ETFs

As of February 2025, the U.S. market features 20 cryptocurrency ETFs, including 12 spot Bitcoin ETFs, 8 Bitcoin strategy ETFs, and 9 spot Ethereum ETFs.

The expansion of the crypto ETF sector is not limited to Bitcoin and Ethereum, as asset managers have also filed applications for Solana, XRP, and even meme-coin-focused ETFs like Dogecoin.

Jung’s remarks come amid broader challenges in South Korea’s financial sector, including declining investor participation and the persistence of “zombie companies” that rely on borrowed capital for survival.

He believes introducing cryptocurrency ETFs could diversify the market, offering investors a safer, regulated way to access digital assets while modernizing the country’s financial landscape.

Additionally, Jung warned against excessive regulations that could stifle innovation.

He also advocated for relaxing restrictions on pension fund investments in equities, arguing that strict limitations on high-risk assets could negatively impact long-term returns.

KOREA EXCHANGE CHAIRMAN PUSHES FOR CRYPTO ETFs

South Korea is the 3rd largest crypto trading nation – but where are the ETFs?

Chairman Jung Eun-bo is calling for crypto ETFs now, saying they’re vital to keep pace with global markets.

The U.S. already has futures & spot ETFs,… pic.twitter.com/qzDCpjYtPL

— IBC Group Official (@ibcgroupio) February 10, 2025

Jung’s push for crypto ETFs follows a turbulent period in South Korea’s stock market, which experienced investor outflows after President Yoon Suk-yeol’s failed attempt to declare martial law.

Speaking at the 2025 Securities and Derivatives Market Opening Ceremony, Jung argued that South Korea must explore new financial opportunities, including cryptocurrency ETFs, to adapt to evolving global markets.

In October 2024, South Korean regulators reportedly considered approving crypto ETFs but have yet to provide a clear timeline.

Earlier in the year, Financial Supervisory Service Governor Lee Bok-hyun hinted that discussions on allowing spot Bitcoin ETFs were ongoing, though no official decision has been made.

South Korea’s Crypto Investors Cross 15 Million

As reported, South Korea’s cryptocurrency investors crossed 15 million in November.

According to figures submitted by the Bank of Korea, 15.59 million South Koreans held accounts on the nation’s top five cryptocurrency exchanges by the end of November.

Deposits in crypto exchanges also doubled, rising from 4.7 trillion won ($3.2 billion) in October to 8.8 trillion won ($6.03 billion) in November.

The growing adoption of digital assets in South Korea comes as a recent survey revealed that most young South Koreans are losing faith in the national pension system, with many stating they see crypto and stocks as a better alternative.

The study found that more than three-quarters of people aged 20-39 “don’t trust” state-issued pensions.

Over half of respondents who said they were making their own pension plans claimed they were building their retirement funds with stocks and crypto.

Source: cryptonews.com