South Korea must introduce cryptocurrency exchange-traded funds (ETFs) to maintain its competitiveness in global finance, according to Korea Exchange (KRX) Chairman Jung Eun-bo. In a recent interview in Seoul, Jung highlighted that South Korea, being the world’s third-largest crypto trading nation, risks falling behind if it delays the introduction of crypto ETFs, especially as other markets move ahead.
Jung pointed to the United States, where both futures and spot Bitcoin ETFs are actively traded, as an example of how other markets are embracing the shift. He emphasized that crypto ETFs could offer new opportunities for South Korea’s financial sector. “Cryptocurrency represents a sector that can create new value in the financial industry. We cannot afford to delay the introduction of cryptocurrency ETFs,” he stated.
As of February 2025, the U.S. market boasts a total of 20 cryptocurrency exchange-traded products, including 12 spot Bitcoin ETFs, 8 Bitcoin strategy ETFs, and 9 spot Ethereum ETFs. The crypto ETF landscape in the U.S. is expanding beyond Bitcoin and Ethereum, with asset managers applying for ETFs focused on assets like Solana, XRP, and even meme coins such as Dogecoin.
Jung’s remarks come amid ongoing challenges in South Korea’s financial sector, including a shrinking investor base and struggling companies surviving on borrowed funds, which he described as “zombie companies.” He believes that cryptocurrency ETFs could help revitalize the market by providing investors with a safer and more regulated way to access digital assets, aligning with his goal of modernizing the country’s financial landscape.
Additionally, Jung warned that excessive regulation could stifle innovation in the market. He also called for easing restrictions on pension fund investments in equities, noting that overly strict limits on high-risk assets could hinder long-term returns.
Earlier, Jung had pushed for exploring cryptocurrency ETFs after South Korea’s stock market experienced a sharp decline, following a mass exodus of investors amid President Yoon Suk-yeol’s unsuccessful attempt to declare martial law. Speaking at the 2025 Securities and Derivatives Market Opening Ceremony, he reiterated the need to explore new business sectors for growth.
In October 2024, local media reported that South Korean regulators were considering the approval of crypto ETFs, although no specific timeline was provided. Earlier in the year, the Financial Supervisory Service governor, Lee Bok-hyun, indicated that discussions were ongoing regarding the potential approval of spot Bitcoin ETFs in South Korea.
