South Korea must embrace cryptocurrency ETFs now to stay ahead, says the Korea Exchange chairman, calling them a game-changer for market growth and financial innovation.
Crypto ETFs Are the Future: Korea Exchange Chairman Pushes for Approval
Jung Eun-bo, chairman of the Korea Exchange, has called for the listing of cryptocurrency exchange-traded funds (ETFs) in South Korea, emphasizing the need to keep up with global financial markets. Jung stated in a recent interview in Seoul, as translated by Google: “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.” He added:
The U.S. has both futures and spot ETFs listed and actively traded. We need to allow cryptocurrency ETF trading without further delay.
Jung’s remarks come at a time when South Korea’s stock market is struggling with a declining investor base and structural issues such as excessive corporate splits and struggling “zombie companies.” He has made it clear that strengthening market oversight and increasing transparency are key priorities. His broader strategy includes pushing for corporate value enhancement initiatives, protecting minority shareholders, and accelerating the delisting of non-viable firms. Regarding crypto ETFs, Jung argued that their introduction would add depth to the financial market and offer investors more regulated options for exposure to digital assets.
As regulatory bodies debate financial reforms, Jung also expressed concerns over excessive legislation, particularly regarding corporate governance laws. He argued that South Korea’s financial markets should be more flexible and competitive, allowing for innovation rather than being burdened by excessive restrictions. Additionally, he supported easing regulations on pension fund investments in equities, suggesting that strict limits on risky assets hinder long-term returns. His advocacy for cryptocurrency ETFs aligns with his broader vision of modernizing South Korea’s financial landscape to stay competitive with global markets.
The cryptocurrency ETF market has seen rapid expansion in major financial hubs, particularly in the United States. The U.S. Securities and Exchange Commission (SEC) approved bitcoin futures ETFs in 2021, followed by the greenlighting of spot bitcoin ETFs in January 2024, which triggered significant inflows from institutional investors. Ether ETFs followed. Major asset managers, including Blackrock and Fidelity, have launched crypto ETFs, increasing mainstream adoption. Beyond the U.S., Canada and several European countries, including Germany and Switzerland, have also embraced crypto ETFs, providing investors with regulated avenues to gain exposure to digital assets. South Korea, despite its active crypto market, has yet to follow suit, raising concerns about missing out on financial innovation.
