South Korea Moves to Reopen Crypto Markets to Corporations After 9-Year Ban

South Korea is preparing to allow corporations to invest in digital assets for the first time since 2017, marking a major shift in one of Asia’s most tightly regulated crypto markets. The Financial Services Commission (FSC) is finalizing new guidelines that would reopen institutional access to crypto after nearly a decade of restrictions.

According to a report by Seoul Economic Daily, listed companies and professional investors will be allowed to invest up to 5% of their equity capital in crypto assets. A senior FSC official said the final rules will be released in January or February, allowing legal entities to transact in digital assets for both investment and financial purposes.

The policy reverses a blanket ban imposed in 2017, when regulators barred institutional crypto participation due to money laundering risks and weak oversight. Under the new framework, corporate investments will be limited to the top 20 cryptocurrencies by market capitalization and must be executed through South Korea’s five largest regulated exchanges.

The FSC shared the draft guidelines with its crypto working group on Jan. 6. Plans for a phased easing of corporate crypto restrictions were first announced in February 2025. The inclusion of dollar-pegged stablecoins such as Tether’s USDT remains under review.

Capital Inflows and Market Impact

The rule change could unlock tens of trillions of won in fresh demand. Naver, South Korea’s largest internet company, holds roughly 27 trillion won ($18.4 billion) in equity capital. Under the proposed limit, it could allocate enough capital to buy about 10,000 Bitcoin, according to the report.

Analysts expect the move to support local crypto markets, expand digital asset treasuries, and strengthen domestic blockchain firms. Until now, many large Korean companies have been forced to invest in crypto-related businesses overseas to bypass local restrictions.

The policy shift may also accelerate approval of spot Bitcoin ETFs in South Korea. Support for crypto ETFs has been growing, though regulatory approval has remained stalled. Regulators are expected to revisit the issue once corporate investment capacity is formally allowed.

CBDC and Stablecoin Strategy

The corporate investment push aligns with South Korea broader digital currency agenda. The government recently outlined a plan to route 25% of national treasury transactions through a central bank digital currency by 2030 as part of its 2026 Economic Growth Strategy.

The plan also includes a new licensing regime for stablecoin issuers. Under the proposal, issuers such as Tether would be required to maintain full reserve backing and guarantee user redemption rights by law.