Korea Exchange (KRX) plans to launch additional investment products including crypto-oriented ETFs and derivatives. On the first official trading day of the year, KRX Chairman Jung Eun-bo indicated that the exchange is ready to handle crypto ETFs, even as regulators evaluate their legitimacy based on current rules.
“We are building the market infrastructure and are ready to go public and trade. ETFs linked to cryptocurrencies Chung said. He also announced plans to increase trading hours.
South Korea is still considering virtual currency regulation
According to Mr. Chung, South Korea’s new exchange initiative is designed This is to counter the “Korean discount,” in which the prices of Korean stocks are set lower than their global counterparts. In the virtual currency market, Bitcoin is often traded at a higher price in South Korea than in the international market.
He said, “The benchmark KOSPI has surpassed the 4,000 mark, and other market indicators such as PER (price-to-earnings ratio) are showing signs of improvement, and our country’s capital market is on the path to normalization.The local capital market should overcome the “Korea discount” and move into the premium market.”
However, in his speech, Chong emphasized the need for greater cooperation between market operators and policymakers, but did not announce any regulatory changes. He added that the exchange plans to introduce an AI-based monitoring system and strengthen enforcement of unfair trading through a joint response team formed last year to combat stock price manipulation.
South Korean regulators are still evaluating the legal status of crypto investment products. Currently, despite growing interest from investors, crypto ETFs are prohibited as regulations do not allow crypto assets to be classified as eligible underlying securities.
The FSC said it is considering reforms through an expert committee to determine whether digital assets can be incorporated into the capital market law framework.
The long-awaited DABA, which was expected to implement broad norms in the crypto trading and issuance space, has been postponed amid unresolved issues regarding stablecoin regulation. Officials have officially postponed the bill’s submission until 2026.
Central to this proposal is no-fault liability, which could mean digital asset providers would have to be held liable for losses even if there is no wrongdoing to support the claim. The proposal also seeks to address the systemic risk of stablecoins by requiring issuers to hold reserves of more than 100% of the tokens in circulation in banks or certificate institutions. However, no agreement has yet been reached on which agency should be responsible for preliminary regulation and oversight.
Nevertheless, the past 12 months have seen growing support for crypto products, especially ETFs, across South Korea’s financial and political circles. In February last year, the chairman of the Korea Financial Investment Association (KOFIA) said the sector plans to consider listing domestic Bitcoin and Ether ETFs, with the aim of allowing regulated access to the cryptocurrency market. The topic gained political attention ahead of the June election. In May, then-Democratic Party presidential candidate Lee Jae-myung promised to approve a spot virtual currency ETF if elected, ultimately winning his campaign.
KRX appoints new executive officer
Recently, Korea Exchange (KRX) appointed a new executive manager to strengthen its market monitoring capabilities. The new appointments will strengthen the market surveillance division’s leadership and accelerate initiatives such as extending trading hours and increasing product listings.
The exchange also recently filled executive positions across its core divisions, including securities, derivatives, market surveillance, and clearing and settlement. Park Sang-wook, former deputy head of derivatives market, has been appointed head of clearing and settlement head office. In addition, a total of six managing directors were appointed, two each for the Market Surveillance Division, KOSDAQ Market Division, and Derivatives Market Division..
