The Republic of Korea is moving forward with new national asset management legislation to formally incorporate encrypted assets into the State-owned asset framework. This adjustment relates not only to asset classification but also to the ongoing construction of digital assets, stabilization currency and encryption ETF systems in the country.
Proposed new approach to replace the old framework
On 15 July, at the Presidential Office Policy Briefing, the Korean Ministry of Enterprise Finance indicated that it would promote the development of the Basic Law on State Assets, replacing the current system, with the State Property Act of 1950 at its core. According to the Ministry of Finance, the old law was formed during a period when government assets were dominated by real estate and it was difficult to cover new categories such as virtual assets and intellectual property.
Under the new programme, government assets are no longer considered primarily property that needs to be preserved, sold or developed. The new framework will set more detailed management and development standards for different types of State-owned assets to enhance the efficiency and value of government-held assets.
Synchronization of digital asset legislation
At the same time, the financial sector of the Republic of Korea indicated that it would continue to promote the Digital Assets Basic Law and to establish a regulatory and legal basis for the country ' s digital asset industry, including institutional arrangements for a Korean dollar-linked stable currency.
It was also mentioned that the follow-up would create a legal basis for the cross-border stabilization of currency transactions and would support related amendments to create conditions for the introduction of a spot-encrypted currency, ETF. This means that the Republic of Korea ' s digital asset control is further extending from trading activities to payments, cross-border settlements and investment products.
Stable currency and block chain pilots continue to expand
In addition to legislation, South Korea is also promoting block-chain infrastructure projects. The finance sector has previously disclosed that the pilot of the connection between the national debt-dinetization and institutional central bank digital money projects will be launched in 2027, and that the Central Bank of Korea will also study ways in which CBDC can interact with other block-chain networks.
At the local level, Kyoto Road plans to launch an eight-month pilot block chain stabilization currency in August. According to NexBlock, a block-chain security company, ZKrypto, will be responsible for the project and will test the links between the issuance, circulation, settlement, anti-fraud, privacy protection and public welfare payments.
Additional information:It was reported that the pilot was expected to last until February 2027, and that the system would introduce zero-knowledge certification techniques to prevent double-flowing and validate asset support during the pilot through a reserve certification mechanism.