South Korea Will Allow Corporate Crypto Investment After 9 Years

South Korea’s Financial Services Commission (FSC) is reportedly updating its guidelines to allow corporations to invest in digital assets after a nine-year ban. 

Listed companies and professional investors will be able to invest up to 5% of their equity capital in crypto assets, reported local news outlet Seoul Economic Daily on Sunday. 

According to the report, a senior FSC official familiar with the matter said the authorities will “release the final guidelines in January [or] February and allow virtual currency transactions for investment and financial purposes by legal entities.”

The move overturns a nine-year ban on corporate crypto investment dating back to 2017, when financial authorities banned institutional participation amid concerns over money laundering.

However, investments will be limited to the top 20 crypto assets by market capitalization and can only be made on Korea’s five largest regulated exchanges. 

The inclusion of dollar-pegged stablecoins such as Tether’s USDT (USDT) is still being discussed, the report noted. 

The FSC shared the latest guidelines with its crypto working group on Jan. 6 and first announced plans for a phased approach to easing rules for corporate crypto investments in February 2025.  

Potential bullish impact on Korean markets 

The move could bring tens of trillions of won into crypto markets. South Korean internet giant Naver, which has 27 trillion won ($18.4 billion) in equity capital, could theoretically buy 10,000 BTC, according to the report. 

It added that the launch of a national stablecoin and spot Bitcoin exchange-traded funds is also expected to be accelerated once the corporate investment capacity is secured. Support for crypto ETFs has been building across the country, but regulatory approval remains stalled. 

Related: South Korea’s top court rules exchange-held Bitcoin can be seized

The move could also result in an expansion of local crypto companies, blockchain startups, and digital asset treasuries (DATs) while boosting domestic investment in digital assets. 

Large South Korean companies have been forced to invest overseas to avoid local restrictions, it added. 

CBDC and stablecoins focus of the economic strategy

The outlet reported on Friday that the South Korean government announced an ambitious digital currency strategy with a primary goal of executing 25% of all national treasury funds through a central bank digital currency (CBDC) by 2030.

The initiative, which is part of the 2026 Economic Growth Strategy, also involves introducing a licensing system for stablecoin issuers, such as Tether, requiring 100% reserve asset backing and legally guaranteeing users’ redemption rights. 

Magazine: One metric shows crypto is now in a bear market: Carl ‘The Moon’