South Korea has outlined a digital asset agenda within its newly released 2026 Economic Growth Strategy.
The announcement represents the country’s most extensive rethink of crypto policy since the collapse of the Terra-Luna ecosystem in 2022. Rather than focusing solely on oversight, the strategy introduces measures covering stablecoins, exchange-traded funds linked to digital assets, and the use of blockchain-based instruments in public finance. Together, these initiatives suggest that digital assets are being positioned as part of the formal financial system rather than as peripheral or speculative instruments.
Stablecoins and ETFs move into regulatory scope
An important segment of the plan is the introduction of a formal regime for stablecoins. The Financial Services Commission is expected to complete the Digital Asset Phase 2 legislation by the first quarter of 2026. Under the proposed framework, issuers would need regulatory approval, meet minimum capital thresholds, and fully back outstanding tokens with reserve assets. Issuers would also be required to ensure that holders can redeem tokens at face value.
Officials have framed these measures as a response to weaknesses exposed by the Terra-Luna failure, which erased tens of billions of dollars in value and prompted scrutiny of algorithmic stablecoins globally. The framework will also extend to rules governing cross-border stablecoin transactions, potentially supporting blockchain-based settlements and remittance flows.
Alongside stablecoins, South Korea plans to allow spot digital asset ETFs. Regulators have previously barred cryptocurrencies from being recognised as eligible underlying assets, preventing domestic listings. The policy shift follows similar approvals in the United States and Hong Kong and is expected to make the market more accessible to institutional investors.
Beyond financial markets, the government intends to integrate blockchain technology into fiscal operations. From 2030, digital currency-based deposit tokens are set to be used for around 25% of national treasury payments. A pilot programme, scheduled for the first half of 2026, will focus on subsidies for electric vehicle charging infrastructure, with further expansion dependent on results.
