South Korean Stock Exchange ‘Explores’ Crypto ETF Approvals
The South Korean stock exchange, the Korea Exchange (KOSDAQ), says it is “exploring” the idea of approving crypto spot ETFs in 2025.
Per the South Korean media outlet The Fact, the claims came from KOSDAQ Chairman Jeong Eun-bo at the 2025 Securities and Derivatives Market Opening Ceremony.
Financial Services Commission (FSC) Chairman Kim Byung-hwan was also in attendance. Kim told an audience at the Korea Exchange in Yeouido, Seoul, that the regulator hopes to grant companies permission to launch security token offerings (STOs) in 2025.
Prices on the Korea Exchange’s KOSPI index of common stocks over the past 12 months. (Source: Google Finance)
Is the South Korean Stock Exchange Growing Crypto Keen?
The duo spoke in the wake of a tumultuous end to 2024 in South Korea. President Yoon Suk-yeol’s unsuccessful attempt to declare martial law in early December 2024 threw an already-sluggish KOSDAQ into chaos.
This led many South Korean and overseas shareholders to sell off their holdings amid talk of a stock market exodus. Kim said:
“Let’s make 2025 the year when the foreign and domestic investors who left the market return.”
The Financial Services Commission Chairman Kim Byung-hwan speaking to reporters in 2024. (Source: YTN/YouTube)
Jeong stated that the stock market needed to look into new business avenues including “crypto exchange-traded funds (ETFs).”
“We will benchmark overseas cases for new business avenues such as crypto ETFs and explore new territory in the capital market.”
Korea Exchange Chairman Jeong Eun-bo
South Korea sharply cut its economic growth forecasts for this year as it reels from the fallout from impeached President Yoon Suk Yeol’s martial law debacle https://t.co/n4eBzlz7EZ
— Bloomberg Markets (@markets) January 2, 2025
STO Hope
Kim, meanwhile, delivered a timely boost for South Korean companies who have been waiting for the green light to issue security tokens for years.
Yoon promised to prioritize STO law changes in his election manifesto. But he has since failed to deliver.
Tension is rising as CIO moves to detain President Yoon Suk Yeol. Protests and legal battles intensify around this historic arrest. https://t.co/3JlQTN1AZQ#SouthKorea #Politics #YoonSukYeol #CIO
— The Korea Herald 코리아헤럴드 (@TheKoreaHerald) January 2, 2025
Traditional financial companies and tech firms are eager to launch STOs. Many have already developed STO platforms in anticipation of imminent approval.
But they have found themselves frustrated as Yoon’s government ran into trouble with a disastrous showing in last year’s midterm elections and corruption allegations.
The FSC appears ready to take up the mantle, however, with lawmakers “pausing” crypto legislation talks until the political turmoil abates.
“We will institutionalize STOs […] to diversify the securities issuance and distribution system. […] We will reorganize the entire system. That will let comprehensive financial investment businesses perform their original role of providing corporate finance and venture capital.”
Financial Services Commission Chairman Kim Byung-hwan
“Last year, our capital market experienced considerable difficulties. The growth potential of our companies weakened due to the contraction of the domestic economy and an export slowdown. The market showed considerably sluggishness compared to major countries due to global conflicts and domestic political events.”
Korea Exchange Chairman Jeong Eun-bo
The FSC chief appealed to lawmakers, the ruling People’s Power Party, and corporate stock market investors to work together toward a common goal. He urged:
“Although we are starting this year in difficult circumstances, the government, the National Assembly, and corporate investors should all work together. As one, we can make 2025 the year when both the overseas and South Korean investors who have exited our market make their return.”
Late last year, Jeong said it was time for regulators to remove obstacles to adoption and called for South Korea to “institutionalize” crypto.
Source: cryptonews.com
