South Korea Must Embrace Crypto ETFs to Compete Globally

South Korea’s Exchange Chairman Jung Eun-bo has expressed that the country needs to implement crypto exchange-traded funds (ETFs) to remain competitive within the global financial framework.

In a recent interview with local media on February 9, 2025, Jung articulated concerns over South Korea’s diminishing edge in the global market where crypto ETFs are already in operation. He emphasized, “South Korea is the world’s third-largest physical cryptocurrency trader. Cryptocurrency is an area that can create new value in the financial industry. In the U.S., forward and spot ETFs are listed and actively traded. We need to unwind crypto ETF trading before it’s too late.”

🥇 The chairman of the KRX has called for the introduction of crypto ETFs in South Korea to ensure the country remains competitive. #SouthKorea #ETFs source — Cryptonews.com (@cryptonews) February 10, 2025

He cited the U.S. market as a prime example with its 20 cryptocurrency exchange-traded products, including spot and futures-based options. The call to approve crypto ETFs aims to invigorate the Korean financial sector by allowing easier and safer access to well-regulated digital assets.

South Korea is Caught in a Financial Quagmire

The financial sector faces significant hurdles, including a shrinking investor base. Jung noted the presence of “zombie companies” that operate on borrowed funds, and he pointed out the alarming trend of investors leaving the stock market, worsened by recent political tensions.

Industry Leaders Align for Crypto ETFs

Others share Jung’s views, including Korea Financial Investment Association’s Chairman, Seo Yoo-seok, who also advocates for the launch of Bitcoin and Ethereum ETFs. Seo remarked, “Even those in their 50s and 60s show a considerable interest in virtual assets.”

The shrinking exchange market—with only 31 operational crypto exchanges compared to 42 last year—highlights the urgency in adopting innovative financial measures. The survival of the domestic crypto landscape may hinge on swift legislative action regarding ETFs.