South Korea must approve crypto ETFs or risk falling behind, says Korea Exchange chairman

South Korea should introduce cryptocurrency exchange-traded funds to stay competitive in global finance, according to the chairman of the Korea Exchange (KRX).

In a recent interview in Seoul, chairman Jung Eun-bo stressed that with South Korea being the “third-largest real cryptocurrency trading country,” delaying crypto ETFs could leave it trailing behind global markets that are already moving ahead.

He pointed to the United States, where both futures and spot Bitcoin ETFs are “available and actively traded,” as an example of how other markets are embracing the shift. Jung added that crypto ETFs could bring fresh opportunities to the country’s financial sector.

“Cryptocurrency represents a sector capable of generating new value in the financial industry […] We must not delay the introduction of cryptocurrency ETF trading,” Jung said.

As of February 2025, the U.S. market boasts a total of 20 cryptocurrency exchange-traded products, encompassing both spot and futures-based offerings. This includes 12 spot Bitcoin ETFs, 8 Bitcoin strategy ETFs, and 9 spot Ethereum ETFs.

Beyond Bitcoin and Ethereum, the crypto ETF landscape is expanding to include other digital assets. Asset managers have filed applications for ETFs targeting cryptocurrencies like Solana, XRP, and even meme coins like Dogecoin.

Jung’s comments come at a time when South Korea’s financial sector is grappling with various challenges, including a shrinking investor base and what he called “zombie companies”—struggling firms that survive on borrowed funds. 

He believes that embracing cryptocurrency ETFs could enrich the market by offering investors a safer and more regulated way to access digital assets. According to him, introducing crypto ETFs aligns with his goal of modernizing the financial landscape in the country.

Jung also weighed in on regulations, warning that excessive legislation could stifle innovation in the market. He also pushed for easing restrictions on pension fund investments in equities, arguing that overly strict limits on high-risk assets could hurt long-term returns.

As previously reported by crypto.news, Jung pushed for exploring cryptocurrency ETFs after South Korea’s stock market was thrown into chaos and saw a mass exodus of investors following President Yoon Suk-yeol’s failed attempt to declare martial law. Speaking at the Securities and Derivatives Market Opening Ceremony 2025, Jung argued that South Korea needs to explore new business sectors.

In October, local media reported that South Korean regulators were considering approving crypto ETFs but did not provide a specific timeline. Earlier in the year, the Financial Supervisory Service governor, Lee Bok-hyun, hinted at ongoing discussions on whether to allow spot Bitcoin ETFs in South Korea.