South Korean Stock Exchange ‘Exploring’ Crypto Spot ETF Approvals
South Korean stock exchange, the Korea Exchange (KOSDAQ), has expressed its interest in potentially approving crypto spot ETFs in 2025. The announcement was made by KOSDAQ Chairman Jeong Eun-bo during the 2025 Securities and Derivatives Market Opening Ceremony. Financial Services Commission (FSC) Chairman Kim Byung-hwan also attended the event, stating the regulator’s intention to authorize security token offerings (STOs) by companies in 2025.
The discussion took place following a tumultuous end to 2024 in South Korea, marked by President Yoon Suk-yeol’s failed attempt to impose martial law in early December, which disrupted the already struggling KOSDAQ. This situation prompted numerous local and international shareholders to sell off their investments amidst concerns of a market exodus. Kim emphasized the goal of encouraging investors, both domestic and foreign, to return to the market in 2025.
Jeong highlighted the importance of exploring new business opportunities in the stock market, including the introduction of crypto exchange-traded funds (ETFs), drawing inspiration from international practices.
Kim provided a positive outlook for South Korean companies awaiting approval to issue security tokens, a development that had been long overdue. Despite Yoon’s prior commitment to prioritize STO law amendments, progress has been stalled. Nevertheless, traditional financial institutions and tech companies are eager to launch STOs, with some already having prepared STO platforms in anticipation of approval.
Acknowledging the challenges faced by the capital market in the previous year, Jeong emphasized the need for collaboration among lawmakers, the ruling People’s Power Party, and corporate investors to facilitate the return of both foreign and domestic investors to the market in 2025. Additionally, Kim outlined plans to institutionalize STOs to enhance the diversity of securities issuance and distribution, ultimately enabling comprehensive financial investment businesses to fulfill their role in providing corporate finance and venture capital.