Korea to Recognize Cryptocurrencies as State Assets

South Korea is preparing to update legislation that has remained largely unchanged since 1950, expanding the list of assets that can be classified as state property. For the first time, the new framework will include cryptocurrencies alongside intellectual property rights.

The proposed reforms were unveiled by the Ministry of Economy and Finance in its economic policy roadmap published on Wednesday. The amendments to the State Property Act are intended to establish a modern framework for managing public assets in an increasingly digital economy.

At the same time, the government is accelerating the adoption of blockchain technology across the public sector. A pilot program for tokenized government bonds is scheduled to launch in 2027. According to the ministry, tokenization could significantly reduce transaction costs while making settlements faster and more efficient.

Officials are also exploring the possibility of tokenizing state-owned real estate. Such a model would allow retail investors to purchase fractional ownership in government assets and share in the returns generated by those investments.

The initiative marks another step in South Korea's broader strategy to digitize public finance. Earlier this year, the Ministry of Finance announced plans to test tokenized deposits for government spending, with trials expected to begin in the fourth quarter. Meanwhile, the Bank of Korea is already conducting a pilot program for its central bank digital currency (CBDC) in partnership with commercial banks.

During the 2027 pilot, the tokenized government bond platform is expected to be integrated with the Bank of Korea's CBDC infrastructure. The government will also evaluate whether the central bank's system can operate seamlessly with other blockchain-based networks.

The amendments to the Capital Markets Act and the Electronic Securities Act are scheduled to take effect on February 4, 2027. Once implemented, blockchain-based systems will gain legal recognition as official securities registries, providing a stronger legal foundation for the country's growing digital asset ecosystem.