The head of the Korea Exchange (KRX) has called for the swift approval of cryptocurrency exchange-traded funds (ETFs) in South Korea, emphasizing the urgent need to align with global financial markets. Jung Eun-bo, chairman of the Korea Exchange, warned that delaying the introduction of such financial products could leave the nation’s markets at a disadvantage compared to international peers.
“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,” Jung stated in a recent interview in Seoul. “The U.S. has both futures and spot ETFs listed and actively traded. We need to allow cryptocurrency ETF trading without further delay.”
Strengthening Market Oversight and Innovation
Jung’s remarks come amid broader concerns over South Korea’s stock market, which has struggled with declining investor confidence, corporate governance issues, and an overabundance of so-called “zombie companies.” These firms, which remain publicly listed despite poor financial performance, have been a central focus of Jung’s reform agenda. He has repeatedly underscored the need for enhanced oversight, improved transparency, and stricter delisting regulations to protect minority shareholders and restore market confidence.
Beyond regulatory tightening, Jung has also advocated for policies that would make South Korea’s financial landscape more competitive. He has voiced concerns over excessive restrictions on corporate governance, arguing that overregulation stifles innovation. Additionally, he has called for the easing of limits on pension fund investments in equities, contending that current caps on riskier assets hinder long-term returns.
The Global Expansion of Crypto ETFs
While South Korea has yet to approve cryptocurrency ETFs, major financial markets, including the United States, Canada, and several European nations, have already embraced them. The U.S. Securities and Exchange Commission (SEC) approved bitcoin futures ETFs in 2021 and spot bitcoin ETFs in early 2024, triggering significant institutional investment. Asset management giants such as BlackRock and Fidelity have since launched crypto ETFs, further integrating digital assets into mainstream financial markets.
Jung’s advocacy for crypto ETFs aligns with his broader vision of modernizing South Korea’s financial ecosystem. Despite South Korea’s prominence in cryptocurrency trading, its regulatory landscape has remained restrictive, potentially deterring financial innovation. Jung’s push for crypto ETFs represents an effort to provide investors with regulated, mainstream avenues for digital asset exposure, ensuring South Korea does not lag behind global financial hubs.
