South Korea plans to explore crypto ETFs and allow firms to launch security tokens in 2025

South Korea is moving forward with plans to explore the introduction of cryptocurrency exchange-traded funds (ETFs) and allow companies to launch security token offerings (STOs) in 2025. The announcement was made by Jeong Eun-bo, Chairman of the South Korea Exchange, at the Securities and Derivatives Market Opening Ceremony 2025. In his speech, Jeong acknowledged the political turmoil in the country, referencing the chaotic aftermath of President Yoon Suk-yeol’s unsuccessful attempt to declare martial law, which caused significant market volatility. As a response, Jeong proposed that South Korea should explore new business sectors, particularly in the form of crypto ETFs, to attract both domestic and foreign investors back into the market.

The Financial Services Commission (FSC), led by Chairman Kim Byung-hwan, is also keen to allow companies to issue security tokens in 2025, a move that has been awaited by South Korean firms for years. The FSC plans to improve the initial public offering (IPO) system and strengthen listing and delisting processes for companies looking to launch STOs, ensuring that public offering prices remain rational. The commission’s goal is to institutionalize STOs and create diverse investment platforms, which would help promote corporate growth and collective investment tools.

These initiatives reflect South Korea’s commitment to advancing crypto regulations and making strides toward legitimizing the cryptocurrency sector. However, the country’s legislative efforts to regulate crypto have been delayed due to the ongoing impeachment proceedings of President Yoon Suk-yeol. Despite this, the South Korean exchange and FSC remain determined to push forward with these regulatory advancements to avoid falling behind other nations in the rapidly evolving crypto industry.