South Korea’s 2026 growth plan has put Bitcoin ETFs on the table, marking a clear shift in how the country views its crypto market. The government said plans to launch “digital asset” ETFs in 2026.
This will allow investors to gain exposure to assets such as Bitcoin and Ethereum through regulated funds instead of trading them directly on exchanges.
South Korea recently announced plans to list Bitcoin ETFs this year
Part of a broader push for digital assets under its 2026 economic growth strategy
They are also drafting a new Digital Assets Act to regulate stablecoins.
Another great economy that includes crypto.
AWESOME!! pic.twitter.com/nOHc95hf5J
— Lark Davis (@LarkDavis) January 9, 2026
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Why South Korea Reversed Its Previous Opposition to Bitcoin ETFs?
The policy change is significantly different from previous guidance from the Financial Services Commission (FSC).
In a notice dated Jan. 12, 2024, the FSC warned that local securities firms providing access to offshore listed Bitcoin ETFs could violate the country’s stance on crypto and the Financial Markets Act.
The regulator said at the time that it would continue to monitor developments around the world but maintained its position against such products in the domestic market.
The new idea goes further than ETFs. The government also said it wants to end digital-asset regulation “Stage 2” by the first quarter of 2026, including new rules for stablecoins.
According to Reuters report, The January 9 policy outlined requirements such as issuer approvals, cash checks, and safeguards aimed at protecting deposits and redemption procedures.
Officials linked the plans to broader market changes. They noted that this project includes efforts to improve access to finance and support cross-border activities.
In another update, the Ministry of Finance said South Korea will switch to 24-hour FX trading by July 2026.
The move is part of an ongoing effort to make it easier for global investors to trade, which has long played a role in reducing cross-border discrimination.
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Could Spot Bitcoin ETF Open a New Kimchi Premium in South Korea?
Traders are now watching to see if the push for ETF approval in South Korea could spark a new “kimchi premium” cycle.
That premium refers to the price gap between Korean exchanges and overseas markets. It tends to expand when demand for a spot jumps faster than arbitrageurs can respond.
Currently, the spread is small. Korean market review showed a Bitcoin premium of 0.61% at 00:00 KST on Jan. 13. Upbit listed BTC at ₩134.03M, while Binance shows ₩133.22M.
Premium kimchi has long been tied to South Korea’s capital controls and trade restrictions, making cross-border “buy abroad, sell in Korea” strategies difficult to scale.
The Spot Bitcoin ETF May Be Closer Than Ever, But The Hard Part Is Still Ahead
A Bitcoin ETF location in South Korea may be closer than ever, but the hard part is still there: building the market pipelines that make it work safely.
Herald Economy’s report on the government’s plan revealed several gaps that still need answers.
These include clearer rules for corporate and institutional participation, how the benchmark index will be constructed and governed, and whether market makers will have reliable risk hedging tools.
Another professor from Seoul National University, quoted in reporthe said that existing ETFs rely on corporate participants that “don’t exist yet” in South Korea’s current market structure.
The asset manager took a more optimistic view, calling the product possible, but only if regulators put in place strong safeguards and create the derivatives market base needed to hedge and liquidate.
In the markets, the next few months come down to three signals. First, whether the government can complete Phase 2 of the digital property law in the first half of 2026.
Second, how does the Financial Services Commission set the rules for institutional access and ETF market making.
Third, whether the planned changes to the FX market in 2026 reduce the friction that has fueled historically sharp “kimchi premium” spikes.
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