The Republic of Korea is incorporating business encryption transactions, tokenized securities and bank deposits into the same round of digital finance promotion programmes. Recent developments have shown that about 3,500 listed companies and professional investment institutions have access to the enterprise encryption account pilot, that legislation on monetized securities has been adopted and that the Central Bank of Korea's deposit token test has been extended to nine banks.

This means that the Republic of Korea digital asset market is moving from a long-term focus on bulk trading to institutional involvement, compliance hosting and chain-based settlements. Three lines of entry, chaining of securities and programmable payments are being built at the same time.

Some 3,500 enterprises included in the pilot

According to the road map published by the Korea Financial Services Commission in February 2025, about 2,500 listed companies and about 1,000 businesses registered as professional investors can apply for the opening of real-name bank accounts tied to the encryption exchange. The financial companies were not in the first range, and the arrangement remained a controlled pilot rather than a full liberalization.

Since 2017, it has been difficult for Korean enterprises to trade virtual assets through local exchanges because banks have not provided the required real-name accounts. Although this is not an express legislative prohibition, the account system effectively excludes business funds from the market.

Prior to this, the Korea Regulatory Authority opened limited account powers only to non-profit institutions, universities, law enforcement agencies and encryption exchanges. They may sell virtual assets obtained through donations, law enforcement confiscations or transaction fees, but do not include general investments.

The Korean media had previously reported that the follow-up rule had considered setting the annual investment ceiling for enterprises at 5 per cent of net assets. However, the range of investments may be limited to the top 20 encrypted assets at market value of the five major South Korean exchanges. The regulator has also discussed whether to include US$ stabilization, such as US$.

Increased demand for hosting and institutional services

Following the roll-out of the pilot enterprise accounts, the need for compliance hosting has also increased. On August 18th, BitGo Korea was registered with the Korea Financial Intelligence Agency (KOFIU) VASP, which allows for the provision of encrypted hosting and transfer services for institutions and enterprises.

Public information indicates that the Hanya Financial Group holds 25 per cent of BitGo Korea and 10 per cent of SK Telecom. However, Bitgo has not yet disclosed the official time of access, the range of supporting assets, the hosting rate and the customer list.

The law on monetized securities will enter into force in 2027.

In addition to business encrypted accounts, Korea has also established legal pathways for tokenized securities. Amendments to the Electronic Securities Act and the Capital Market Act were passed by the Korean Congress on 15 January 2026 and the relevant bill was published on 3 February and is scheduled to enter into force on 4 February 2027.

After the amendment, distributed books can be used as legal records for the issuance of securities, but the issuer still needs to register through the Korea Securities Regulatory Authority, rather than viewing chain records as a system of ownership independent of the existing regulatory system.

With the revision of the Capital Markets Act, investment contract securities and fragmentation investment products will also be included in the regulatory market. Licensed intermediaries may participate in distribution, while off-site transactions will operate in accordance with the rules established by financial regulators.

Infrastructure development is well advanced. The Korea Securities Regulatory Agency has previously advanced the upgrading of the testing system, with the goal of developing an operational monetized securities platform by February 2027, with functions including real-time monitoring of issuance records, circulation verification, rights management and the number of tokens.

The Central Bank of Korea expanded the deposit token test

The Han River Initiative promoted by the Central Bank of Korea focuses on the payment level. The project combines deposit tokens issued by commercial banks with central bank wholesale currency settlements. Deposit tokens are essentially digitized forms of bank deposits, not central bank digital currencies that are issued directly to the public.

Since the first phase was launched in April 2025, 80,000 out of an estimated 100,000 invited users have opened wallets, cumulatively completing approximately 118,000 payment transactions, but with a total value of less than 700 million won.

In March 2026, the second phase was extended to nine banks, with the addition of Gyeongnam Bank and iM Bank to existing institutions. The new phase includes individual transfers, biometric payment authorizations, and automatic conversions between general deposits and deposit tokens.

The Central Bank of Korea is also testing government payment scenarios and programmable restrictions, including electric vehicle charging infrastructure subsidies and public sector operating expenses. Related payments may be made subject to such conditions as the recipient, the place of use and the period of validity.

In addition, a deposit payment project, supported by the Korea Internet Renewal Institute and the Ministry of Science and Technology Information and Communication, was launched in July with a size of 9.6 billion won, or approximately $6.9 million. The project, led by the Korea Financial Clearing House, involved nine banks, eight payment companies and two large businesses, with the aim of connecting deposits to existing payment networks.