South Korea’s Financial Services Commission (FSC) is finalizing new guidelines that would allow listed corporations and professional investors to invest directly in digital assets, which is a significant change in policy after nearly a decade of restrictions.
According to a report from the Seoul Economic Daily, the FSC plans to release the final version of the guidelines in January or February. Once finalized, eligible firms will be permitted to allocate up to 5% of their equity capital to cryptocurrency investments. A senior official familiar with the matter stated that the authorities will “release the final guidelines in January or February and allow virtual currency transactions for investment and financial purposes by legal entities.”
The policy would reverse a ban introduced in 2017, when regulators prohibited institutional participation in crypto markets due to concerns over money laundering, excessive speculation, and financial instability.
Investment scope limited to top assets and major exchanges
Under the proposed framework, corporate investments will face strict limitations. Companies will only be allowed to invest in the top 20 cryptocurrencies by market capitalization, as listed on South Korea’s five largest regulated exchanges. The annual investment cap will remain fixed at 5% of equity capital in order to contain exposure and reduce market volatility.
Discussions continue over whether dollar-pegged stablecoins, including Tether’s USDT, will qualify as permissible assets. The outlet reported that regulators have not reached a final decision on this point.
The FSC shared the draft guidelines with its public-private crypto task force on Jan. 6. The move follows the regulator’s February 2025 announcement of a phased approach to easing restrictions on corporate crypto activity. According to the proposal, corporations could begin making investments by the end of 2026, depending on legislative timing and enforcement schedules.
Industry reaction highlights concern over investment limits
The policy shift has received broad support across South Korea’s digital asset sector, though concerns remain about the strict investment cap. Industry participants argue that the 5% threshold could reduce competitiveness when compared with other major markets.
“Investment limits, which do not exist overseas, could weaken the inflow of funds and prevent the emergence of specialized virtual currency investment companies,” one industry insider said, as quoted by local media.
The United States and Japan impose no explicit limits on corporate crypto holdings, while the European Union and Singapore permit broad participation by companies. Critics fear that South Korea’s cautious approach may continue to push capital overseas, a trend that already exists under the current framework.
Potential market impact measured in trillions of won
Despite the restrictions, a significant inflow of capital is expected once the rules take effect. The report noted that South Korean internet giant Naver, which holds 27 trillion won ($18.4 billion) in equity capital, could theoretically acquire more than 10,000 Bitcoin if it invested the full 5% allocation.
Financial authorities estimate that approximately 3,500 corporations could become eligible participants. Observers expect corporate entry to reduce speculative dominance in domestic markets, which remain heavily driven by retail investors. In the first half of last year, more than 76 trillion won reportedly flowed out of South Korea, partly due to limited institutional participation at home.
Crypto policy aligns with broader digital currency strategy
The corporate investment framework fits within a wider national digital asset strategy. On Friday, Seoul Economic Daily reported that the government plans to route 25% of national treasury transactions through a central bank digital currency by 2030. The initiative forms part of the 2026 Economic Growth Strategy.
The same plan includes a licensing regime for stablecoin issuers, which would require full reserve backing and legally protected redemption rights. Regulatory debates continue over whether stablecoin oversight should fall under the FSC or the Bank of Korea.
Meanwhile, broader crypto legislation remains delayed. The Digital Asset Basic Law, which would establish standards for custody, issuance, and investor protection, has been postponed until 2026, according to prior reporting.
Gradual shift after years of restriction
South Korea banned corporate crypto investments and initial coin offerings in 2017, framing digital assets as “non-productive speculative” activity at the time. Regulatory attitudes have softened in recent years, especially under President Lee Jae-myung’s administration, which took office in 2025.
Last year, authorities began allowing non-profit organizations and crypto exchanges to liquidate digital assets for financial management purposes. The upcoming guidelines now represent the most comprehensive step toward reintegrating corporations into the domestic crypto market.
Oleksii Shumak
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