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South Korea’s 2026 growth plan has put spot Bitcoin ETFs back on the table, marking a clear shift in how the country views its crypto market. The government said it plans to introduce spot “digital asset” ETFs in 2026.
This would allow investors to gain exposure to assets like Bitcoin and Ethereum through regulated funds instead of trading them directly on exchanges.
South Korea just announced plans to list Bitcoin ETFs this year
Part of a broader digital asset push under its 2026 economic growth strategy
They’re also drafting a new Digital Asset Act to regulate stablecoins.
Another major economy embracing crypto.
BULLISH!! pic.twitter.com/nOHc95hf5J
— Lark Davis (@LarkDavis) January 9, 2026
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Why Did South Korea Reverse Its Earlier Opposition to Spot Bitcoin ETFs?
The policy shift stands in sharp contrast to earlier guidance from the Financial Services Commission (FSC).
In a notice dated Jan. 12, 2024, the FSC warned that local securities firms offering access to overseas-listed spot Bitcoin ETFs could violate the country’s stance on crypto and the Capital Markets Act.
The regulator said at the time that it would keep monitoring global developments but held its position against such products in the domestic market.
The new outlook goes further than ETFs. The government also said it wants to complete “Phase 2” digital-asset legislation by the first quarter of 2026, including new rules for stablecoins.
As per Reuter’s report, the January 9 strategy outlined requirements such as issuer approvals, capital checks, and safeguards meant to protect reserves and redemption processes.
Officials linked these plans to broader market reforms. They noted that the work includes efforts to improve capital access and support cross-border activity.
In a separate update, the finance ministry said South Korea will shift to 24-hour FX trading in July 2026.
The move is part of an ongoing attempt to make the won easier for global investors to trade, which has long played a role in limiting cross-border arbitrage.
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Could a Spot Bitcoin ETF Trigger a New Kimchi Premium in South Korea?
Traders are now watching to see whether the ETF approval momentum in South Korea could spark a new “kimchi premium” cycle.
That premium refers to the price gap between Korean exchanges and overseas markets. It usually widens when local demand jumps faster than arbitrage traders can respond.
For the moment, the spread is small. A Korean market update showed a 0.61% Bitcoin premium at 00:00 KST on Jan. 13. Upbit listed BTC at ₩134.03M, while Binance showed ₩133.22M.
The kimchi premium has long been tied to South Korea’s capital controls and trading limits, which make cross-border “buy abroad, sell in Korea” strategies difficult to scale.
Spot Bitcoin ETF May Be Closer Than Before, But The Hard Part Is Still Ahead
A spot Bitcoin ETF in South Korea may be closer than before, but the hard part is still ahead: building the market plumbing that makes it work safely.
A Herald Economy report on the government’s strategy pointed to several gaps that still need answers.
These include clearer rules for corporate and institutional participation, how a benchmark index would be built and governed, and whether market-makers will have reliable tools to hedge risk.
One Seoul National University professor, quoted in the report, said spot ETFs depend on corporate participants that “do not yet exist” in South Korea’s current market structure.
An asset manager took a more optimistic view, calling the product feasible, but only if regulators put stronger safeguards in place and build out the derivatives-market foundation needed for hedging and liquidity.
For markets, the next few months come down to three signals. First, whether the government can finalize Phase 2 digital-asset legislation in the first quarter of 2026.
Second, how the Financial Services Commission sets the rules for institutional access and ETF market-making.
Third, whether planned FX-market reforms in 2026 reduce the frictions that have historically fed sharp “kimchi premium” spikes.
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Key Takeaways
South Korea’s recent policy shift stands in sharp contrast to earlier guidance from the Financial Services Commission (FSC).
A spot Bitcoin ETF in South Korea may be closer than before, but the hard part is still ahead: building the market plumbing that makes it work safely.
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