Why does South Korea want state funds to invest in digital assets?

South Korea wants state-run investment funds to gain regulated exposure to digital assets. The proposal is part of a broader plan to modernise the country's financial markets.

Who proposed the digital asset investment plan?

The proposal was introduced by lawmakers from South Korea's ruling Democratic Party. It forms part of the party's wider digital asset policy agenda.

What other reforms are included in the proposal?

The plan also supports tokenised securities, clearer crypto regulations and stronger oversight of digital asset businesses operating in South Korea.

Has South Korea approved the proposal?

No. The proposal has not yet become law and must complete the country's legislative process before it can take effect.

Why is South Korea important to the crypto industry?

South Korea is one of the world's largest cryptocurrency markets. It has a large retail investor base and continues to expand its regulated digital asset sector.

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South Korea backs digital assets for state funds

Written by Heidi Cuthbert Published Jul 16, 2026, 12:17 AM

South Korea plans to let state funds invest in digital assets.
The proposal is part of a broader push to expand the country's crypto market.
Officials also want to support tokenised securities and blockchain finance.

South Korea's ruling Democratic Party has proposed allowing state-run investment funds to invest in digital assets as part of a wider plan to modernise the country's financial system.

The proposal would let public asset managers gain exposure to digital assets while supporting the government's broader push to expand blockchain-based finance.

“There is no reason public funds should be excluded from digital asset investments if proper safeguards are in place,” said Democratic Party lawmaker Min Byung-duk.

The plan also includes support for tokenised securities, clearer digital asset regulations and stronger oversight for crypto businesses operating in South Korea.

The proposal has not yet become law, but it reflects growing political support for expanding regulated digital asset investment across the country's financial sector.

South Korea is one of the world's largest cryptocurrency markets, with millions of retail investors and increasing interest from financial institutions.

The latest proposal follows a series of government efforts to build a regulated digital asset industry while encouraging blockchain innovation.