South Korea has reaffirmed plans to expand its blockchain and digital asset sector in the second half of 2026, pairing new blockchain initiatives with legislation for stablecoins, tokenized government bonds, and spot crypto ETFs.
After Monday’s State Council meeting, the Ministry of Economy and Finance stated that blockchain development will remain part of the country’s economic growth strategy despite stronger policy support for artificial intelligence. The ministry will back large-scale blockchain pilot projects and promote the proposed Digital Asset Basic Act, which will establish a legal framework for digital assets, including business conduct rules and standards for Korean won-pegged stablecoins. The act also lays the foundation for cross-border stablecoin transactions and supports amendments to the Capital Markets Act to allow the first spot cryptocurrency exchange-traded funds in South Korea.
On the infrastructure front, a pilot programme for tokenized government bonds linked to an institutional central bank digital currency (CBDC) project is set to begin in 2027. The Bank of Korea will study how the CBDC can interoperate with other blockchain networks. Additionally, Gyeonggi Province confirmed an eight-month proof-of-concept programme starting August 2026 to test a blockchain-based stablecoin for regional currency and government payments. Led by blockchain security firm ZKrypto, the trial will use zero-knowledge proofs to prevent double spending and proof-of-reserves technology to verify reserve assets.
The government will also explore ways to manage and trade Global Voluntary Carbon Market credits on blockchain platforms. While blockchain remains on the agenda, the ministry placed greater emphasis on artificial intelligence, designating physical AI, AI data centres, and semiconductors as three national 'Mega Projects' with an investment of 800 trillion won (about $535.6 billion) to build semiconductor fabrication facilities.
