South Korea is preparing a major shift in its approach to cryptocurrencies. The country’s financial regulator, the Financial Services Commission (FSC), plans to lift a ban introduced in 2017 that prevented companies from investing in digital assets. According to Seoul Economic Daily, the change could take effect as early as January or February, allowing not only professional investors but also publicly listed companies to enter the crypto market.

Under the new framework, firms will be allowed to invest up to five percent of their equity into cryptocurrencies. This marks a sharp reversal from the stance taken during the 2017 crypto boom, when authorities barred institutional participation over concerns about money laundering and financial instability. A senior FSC official said that the “final guidelines will be released in January or February and will allow legal entities to transact in virtual currencies for investment and financial purposes.”

Strict rules, massive potential

The regulatory easing will still come with limits. Companies will be restricted to investing in the top 20 cryptocurrencies by market capitalization and only through the country’s five largest regulated exchanges. Regulators are also debating whether dollar-backed stablecoins, such as those issued by Tether, will be included.

The FSC shared its draft rules with a working group on January 6 and outlined a phased easing plan in February 2025. The impact could be significant. Estimates suggest that tens of trillions of won could flow into crypto assets.

Local media often point to tech giant Naver as an example. With equity of roughly 27 trillion won (about $18.4 billion), the company could theoretically purchase up to 10,000 bitcoins. Such a move would have a strong psychological and market impact not only in Korea but globally.

Digital assets as a national priority

Opening the market to corporations could also accelerate other developments, including the launch of a national stablecoin, faster approval of spot bitcoin ETFs, and growth in domestic Blockchain startups and corporate digital reserves known as Digital Asset Treasuries. While support for crypto ETFs has been rising, regulatory approval has lagged. The entry of major players could change that dynamic.

The reform will also end the paradox in which large Korean companies had to invest in crypto abroad to bypass domestic restrictions.

The move aligns with South Korea’s broader digital strategy. The government aims for 25 percent of national treasury operations to run on a central bank digital currency, or CBDC, by 2030. By combining strict oversight with active support for digital assets, South Korea could soon position itself among the global leaders in institutional cryptocurrency adoption.

Sources:

https://www.sedaily.com/NewsView/2K79G9QVEM

https://en.sedaily.com/finance/2026/01/09/korea-to-execute-25-percent-of-treasury-funds-via-digital