Kofia’s Chairman, Seo Yoo-seok, is calling for a major advancement in Korea’s cryptocurrency sector. He is advocating for the green light on cryptocurrency spot exchange-traded funds (ETFs) and the official acknowledgment of security tokens. At a recent New Year’s press conference at Kofia’s Seoul headquarters, Seo shined a light on the burgeoning potential of the virtual asset market, noting how U.S. President Donald Trump’s embrace of crypto policies is driving this growth. Seo emphasized that Korea needs to act promptly to secure a formidable standing in the global crypto arena.
Why Push for Crypto ETFs?
The momentum for crypto ETFs picked up speed after the US Securities and Exchange Commission (SEC) gave the nod to Bitcoin and Ethereum spot ETFs last year, sparking similar offerings from prominent asset managers. Seo believes that Korea must jump on this bandwagon to avoid being left in the dust. He believes these financial products could significantly "enhance market transparency, attract more institutional players, and cement Korea’s leadership" in digital asset innovation. Another key motivation behind Seo’s ETF push is to provide a testing ground for millennials before they plunge fully into virtual assets. At the conference, the Kofia Chairman remarked:
"While many view virtual assets as an investment primarily for the MZ generation (Millennials + Generation Z), there is a sizable interest from those in their 50s and 60s as well. Their investment potential is substantial, but jumping straight to virtual assets might not be ideal. Hence, introducing ETFs globally recognized, like those based on Bitcoin and Ethereum, in our market would enable investors to participate with greater ease and confidence."
Advocating for Regulatory Progress
In addition to advocating for cryptocurrency ETFs, Seo is also championing the institutionalization of security tokens in Korea. Kofia aims to engage with financial regulators this year to advocate for integrating Bitcoin and Ethereum spot ETFs into the national financial framework. Such a move could position Korea as a magnet for institutional investment, increase liquidity, and bolster a more "resilient digital asset ecosystem." According to local media, Seo mentioned:
"The next Trump administration is poised to further fuel global businesses related to virtual assets. To ensure Korea remains in step with this trend, I am committed to supporting the formalization of security tokens and will continue to push for the approval of virtual asset ETFs."
Apart from the crypto-focused agenda, Seo also underscored Kofia’s dedication to the government-led "Value-up" initiative. This policy, rolled out last year, seeks to address the perceived undervaluation of local stocks, often termed the "Korea discount."
Seo described this initiative as a multifaceted approach to drive qualitative economic growth, bolster the financial market, and expand financial assets for citizens. He called for a concerted effort among the government, National Assembly, and private sector to make this program a success.
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