The Republic of Korea has published a new economic policy road map, which plans to adapt the State-owned asset management system, which has been in operation for many years, to formally include virtual assets and intellectual property in the national asset range. At the same time, the document reiterates that the Republic of Korea will launch a pilot project on monetization of national debt in 2027 and will study a national real estate monetization programme for retail investors.

The law extends to virtual assets

In accordance with the road map issued by the Korean Ministry of Enterprise Finance, the Government intends to amend the State Property Act of 1950 to update the definition and management of State assets. One of the priorities of this realignment is the integration of virtual assets into the national asset system to accommodate the digital asset management needs.

It was also suggested that the Government would establish a more complete legal framework for State-owned asset management, beyond traditional real estate and physical assets. Intellectual property rights are also included in the scope to be included.

Pilot National Monetary Debt 2027

The Korean Government has reconfirmed that the pilot of monetized national debt will be launched in 2027. It is officially recognized that block-chain technology helps to reduce transaction costs and improve the efficiency of asset transfers.

  • The National Monetary Debt System is intended to access the CBDC infrastructure
  • The government will study the interoperability of the different distributed account platforms
  • State-owned real estate monetization will be assessed for retail investors

The Republic of Korea had indicated earlier in the year that it planned to test tokenized deposits for government expenditure beginning in the fourth quarter. The Central Bank of Korea has also launched a CBDC experiment with commercial banks, which means that the connection between public finance and digital monetary infrastructure is advancing simultaneously.

The block chain book will be legally recognized.

In addition to the restructuring of the State-owned asset management system, the Republic of Korea will simultaneously promote the revision of relevant laws in the capital market. Under the arrangement, amendments to the Capital Market Act and the Electronics Act will enter into force on 4 February 2027.

When the amendments come into force, the system of books based on block chains will be officially recognized as a securities registry system. This means that the legal basis for the issuance, registration and flow of relevant digital assets will be further clarified and that institutional support will be provided for the subsequent location of monetization financial products.

Taken as a whole, the South Korean Road Map addresses not only the classification of encrypted assets, but also the integration of the monetization of national debt, the uplinking of State-owned assets, and the central bank’s digital monetary infrastructure in the same policy advancement framework.