South Korea to Explore Crypto ETFs and STOs in 2025

South Korea plans to explore crypto ETFs and STOs in 2025, focusing on shareholder value, market safety, and new investment platforms.

South Korea plans to explore crypto ETFs and security token offerings in 2025. The chairman of the Korea Exchange, Jeong Eun-bo, announced this at the “2025 Securities and Derivatives Market Opening Ceremony.” He explained that the exchange wants to give companies permission to launch security tokens and allow for the approval of crypto spot ETFs.

In the past year, the difficulties Chairman Jeong also spoke about the capital market faced. Exports were also down and the domestic economy slowed down. Global conflicts also hurt the market. Therefore, South Korea exhibited relatively slow market growth than other countries. The problems could even continue this year, Jeong said. However, he noted the “Korea discount,” or difference between the prices at which South Korean companies are trading globally and at home, was still a problem. However, he is positive that the situation can be improved.

South Korea Seeks to Boost Foreign Investment Amid Decline in 2024

Jeong is committed that he will continue to champion the value up program. This program asks companies to look to shareholder value. At the end of last year, 102 companies had joined the program — 41% of the total value of the market — he said. For 2025, he hopes to get more companies on board. He also said that it’s key to diversify its income. Part of his effort is to increase the revenue from a major source of revenue for global exchanges, the data index business.

Jeong also said market surveillance would have to be improved to increase trust. Unfair trading practices hurt investor confidence he said. To improve the market’s monitoring systems and get rid of insolvent companies, he plans to do this. This will help make for a safer environment for the investors.

He also touched on progress in 2024 in his speech on behalf of the Financial Services Commission chairman, Kim Byung-hwan. He said more and more companies are looking at shareholder value. But, he said, there are still problems. For instance, foreign investment has decreased and domestic investors invest more and more money in overseas stocks.

Looking ahead to 2025, Kim plans to focus on three areas: including improving market safety, strengthening the delisting system, and enhancing corporate governance. In addition, he hopes to create new investment platforms and promote STOs (tokenized securities). These changes will modernize South Korea’s capital market.