Key Points
- South Korea’s Korea Exchange (KRX) chairman, Jung Eun-bo, urges the country to adopt cryptocurrency ETFs.
- Jung believes embracing crypto ETFs could modernize the financial landscape and provide safer access to digital assets.
The chairman of the Korea Exchange (KRX), Jung Eun-bo, has suggested that South Korea should implement cryptocurrency exchange-traded funds (ETFs) to maintain its competitiveness in the global financial market.
South Korea’s Position in Global Crypto Trading
In a recent interview in Seoul, Jung highlighted South Korea’s status as the “third-largest real cryptocurrency trading country”. He warned that any delay in introducing crypto ETFs could result in the country lagging behind other global markets that are already progressing.
Jung pointed to the United States as an example of a market that is embracing the crypto shift, where both futures and spot Bitcoin ETFs are “available and actively traded”. He believes that crypto ETFs could open new opportunities for South Korea’s financial sector.
“Cryptocurrency represents a sector capable of generating new value in the financial industry […] We must not delay the introduction of cryptocurrency ETF trading,” Jung stated.
US Market’s Crypto ETF Landscape
As of February 2025, the U.S. market has a total of 20 cryptocurrency exchange-traded products, which include both spot and futures-based offerings. This encompasses 12 spot Bitcoin ETFs, 8 Bitcoin strategy ETFs, and 9 spot Ethereum ETFs.
The crypto ETF landscape is also expanding to include other digital assets. Asset managers have submitted applications for ETFs that target cryptocurrencies like Solana, XRP, and even meme coins such as Dogecoin.
Jung’s remarks come at a time when South Korea’s financial sector is facing various challenges, including a dwindling investor base and struggling firms that survive on borrowed funds, which he referred to as “zombie companies”.
He believes that the adoption of cryptocurrency ETFs could enrich the market by providing investors a safer and more regulated method to access digital assets. Jung asserts that introducing crypto ETFs aligns with his objective of modernizing the country’s financial landscape.
Jung also discussed regulations, cautioning that excessive legislation could hinder market innovation. He advocated for loosening restrictions on pension fund investments in equities, arguing that overly strict constraints on high-risk assets could negatively impact long-term returns.
Jung has been advocating for the exploration of cryptocurrency ETFs following turmoil in South Korea’s stock market and a mass departure of investors after President Yoon Suk-yeol’s unsuccessful attempt to declare martial law. During the Securities and Derivatives Market Opening Ceremony 2025, Jung argued that South Korea needs to explore new business sectors.
In October, local media reported that South Korean regulators were contemplating the approval of crypto ETFs, but did not provide a specific timeline. Earlier in the year, the Financial Supervisory Service governor, Lee Bok-hyun, hinted at ongoing discussions on whether to permit spot Bitcoin ETFs in South Korea.
