South Korea’s main securities and derivatives exchange operator, the Korea Exchange (KRX), is seeking to expand its lineup of investment products to include crypto exchange-traded funds (ETFs) and derivatives, as part of a broader effort to modernize the country’s capital markets.
At the first trading day ceremony of the new year, KRX chairman Jeong Eun-bo said the exchange is operationally ready to support crypto ETFs, even as regulators continue to debate whether such products can be approved under current securities laws.
Jeong positioned the initiative within South Korea’s broader attempt to address the so-called “Korea discount,” where domestic equities trade at lower valuations than global counterparts. He noted that the crypto market presents a contrasting dynamic, with Bitcoin often trading at a premium on local exchanges compared with international platforms.
He also highlighted additional reforms under consideration, including a gradual transition toward 24-hour trading and greater preparedness for digital finance.
Although no new regulatory approvals were announced in the speech, Jeong’s remarks underscored increasing coordination between market operators and policymakers as South Korea assesses how crypto assets could be integrated into the traditional financial system.
Infrastructure ready, regulation still unresolved
KRX’s comments come as regulators continue to examine the legal status of crypto-based investment products. Under existing rules, digital assets are not recognized as eligible underlying assets for securities, effectively preventing the launch of crypto ETFs despite rising investor demand.
The Financial Services Commission has said it is reviewing potential reforms through a dedicated crypto committee, including whether digital assets could be incorporated into the Capital Markets Act.
In the meantime, KRX’s public signaling suggests that infrastructure is no longer the primary obstacle. By emphasizing its readiness to list and trade crypto-linked products, the exchange appears positioned to act quickly once regulatory hurdles are removed.
Momentum builds, but approvals remain on hold
Support for crypto ETFs has grown across South Korea’s financial industry and political landscape over the past year.
In February, the head of the Korea Financial Investment Association (KOFIA) said the industry would push to list domestic Bitcoin and Ether ETFs to meet growing investor demand for regulated crypto exposure.
The issue later gained political traction ahead of the June presidential election. In May, then–Democratic Party front-runner Lee Jae-myung pledged to approve spot crypto ETFs if elected—a promise that drew renewed attention after he went on to win the election.
