South Korean securities exchange and derivatives operator Korea Exchange (KRX) plans to increase its new investment products, including exchange-traded funds (ETFs) and crypto derivatives, as part of a broader effort to modernize capital markets.
Speaking at the first trading ceremony of the new year, KRX Chairman Jeong Eun-bo signaled that the exchange was operationally ready to support crypto ETFs, even as regulators continued to deliberate whether such products could be approved under existing securities regulations.
Jeong framed the move as part of South Korea’s efforts to move beyond the “Korean discount,” a phenomenon in which domestic stocks trade at lower valuations than their global peers. The dynamic is different in crypto, where Bitcoin often trades at a premium on local exchanges compared to foreign platforms.
He also highlighted other initiatives such as a gradual move towards 24-hour trading and digital finance readiness.
Although the new year’s speech did not announce new regulatory approvals, it highlighted the growing coordination between market operators and policymakers as the country evaluates whether crypto can be integrated into its traditional financial system.
Infrastructure ready, regulations still undecided
KRX’s comments come as South Korean regulators continue to review the legal status of crypto-based investment products.
Under current rules, crypto assets are not classified as eligible underlying assets for securities, thereby blocking crypto-based ETFs despite growing investor demand.
The Financial Services Commission previously said it was exploring potential reforms through a dedicated crypto committee, including whether digital assets could be recognized under the Capital Markets Act.
As regulators weigh these decisions, KRX’s message suggests that market infrastructure may no longer be a limiting factor. By publicly signaling its willingness to list and trade crypto-related products, the exchange is positioning itself to act quickly once regulatory barriers are lifted.
Related: Bithumb reports $200 million in dormant crypto assets across 2.6 million inactive accounts
Crypto ETFs have gained momentum, but approvals remain stuck
Support for crypto ETFs has grown across the country’s financial and political establishment over the past year.
In February, the head of the Korea Financial Investment Association (KOFIA) said the industry would push to list Bitcoin and Ether ETFs domestically to meet growing demand from investors seeking regulated crypto exposure.
The issue then entered mainstream politics ahead of the June presidential election. In May, Lee Jae-myung, who was the Democratic Party’s presidential frontrunner, pledged to approve spot crypto ETFs if elected. Lee won the election.
Review: Koreans “pump” alts after Upbit hack and rise of BTC mining in China: Asia Express
