Korea Exchange Chairman Urges Approval of Crypto ETFs to Strengthen Financial Markets
Jung Eun-bo, chairman of the Korea Exchange, has emphasized the urgent need for South Korea to embrace cryptocurrency exchange-traded funds (ETFs) to stay competitive in the global financial market. He believes that allowing crypto ETFs will not only modernize the country’s financial landscape but also attract more investors, enhance market depth, and position South Korea as a leader in digital asset innovation.
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The Case for Crypto ETFs in South Korea
Speaking in a recent interview in Seoul, Jung highlighted South Korea’s prominent role in the cryptocurrency sector, stating:
“Korea is the third-largest real cryptocurrency trading country in the world. Cryptocurrency is a field that can create new value in the financial industry.”
He pointed out that while the United States has successfully introduced both futures and spot crypto ETFs, South Korea has yet to follow suit. Jung believes delaying approval any further could hinder the country’s ability to capitalize on emerging financial trends.
“The U.S. has both futures and spot ETFs listed and actively traded. We need to allow cryptocurrency ETF trading without further delay.”
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Boosting Market Growth Amid Economic Challenges
South Korea’s stock market has been facing structural challenges, including a shrinking investor base, excessive corporate splits, and struggling “zombie companies” that continue operating despite financial distress. Jung has made it clear that revitalizing the market is a top priority, and crypto ETFs could play a crucial role in this transformation.
His broader strategy includes strengthening market oversight, increasing transparency, and protecting minority shareholders. He is also advocating for corporate value enhancement initiatives and the delisting of non-viable firms to improve overall market health. Introducing crypto ETFs, Jung argues, would provide regulated investment options for digital assets, attracting institutional investors and boosting financial market growth.
Regulatory Challenges and the Push for Reform
As South Korean regulators debate financial reforms, Jung has raised concerns about excessive legislation, particularly in corporate governance laws. He argues that while oversight is essential, overly restrictive policies could stifle financial innovation and prevent the country’s markets from evolving.
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Additionally, he has supported easing regulations on pension fund investments in equities, believing that strict limits on riskier assets hinder long-term returns. His advocacy for cryptocurrency ETFs aligns with his broader vision of making South Korea’s financial market more flexible, competitive, and aligned with global standards.
Global Expansion of Crypto ETFs
The cryptocurrency ETF market has grown rapidly in major financial hubs worldwide, particularly in the United States. The U.S. Securities and Exchange Commission (SEC) approved Bitcoin futures ETFs in 2021 and later greenlit spot Bitcoin ETFs in January 2024, leading to a surge in institutional investments. Ethereum ETFs soon followed, further legitimizing crypto assets in traditional finance.
Beyond the U.S., countries such as Canada, Germany, and Switzerland have also adopted crypto ETFs, providing regulated avenues for investors to gain exposure to digital assets. South Korea, despite having one of the most active crypto markets globally, has yet to introduce these financial products, raising concerns that it could fall behind in financial innovation.
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The Future of Crypto ETFs in South Korea
Jung’s push for crypto ETF approval signals a potential shift in South Korea’s regulatory approach to digital assets. With increasing institutional interest and a growing global trend toward crypto integration in traditional finance, South Korea may need to act quickly to avoid losing its competitive edge.
If approved, cryptocurrency ETFs could bring numerous benefits, including:
Increased Market Participation – Providing retail and institutional investors with regulated exposure to digital assets.
Greater Transparency – Reducing reliance on unregulated crypto exchanges.
Enhanced Liquidity – Strengthening market depth and attracting global investment.
Financial Innovation – Positioning South Korea as a leader in blockchain-based financial products.
As discussions around financial modernization continue, all eyes will be on South Korean regulators to see whether they embrace cryptocurrency ETFs and take a significant step toward integrating digital assets into the country’s financial ecosystem.
