South Korea’s Crypto Ambition: 25% of State Budget to Flow into Digital Assets by 2030
Seoul is betting big—and with public money.
### From Sovereign Wealth to Sovereign Blockchain
South Korea isn't just dipping a toe in the crypto waters; it's preparing to dive in headfirst with the national treasury. The government's roadmap commits a staggering quarter of its annual budget to digital asset investments and blockchain infrastructure within the next four years. This isn't a fringe pilot program—it's a core fiscal strategy.
### Building the Digital Public Ledger
The plan bypasses traditional finance ministries, funneling capital directly into national blockchain networks, digital won development, and tokenized public assets. Think treasury bonds on-chain, municipal projects funded via crypto, and a state-backed venture arm aggressively seeding Web3 startups. They're building a parallel, digitized financial ecosystem from the ground up.
### The Global Race for Financial Sovereignty
This move cuts through years of regulatory hesitation. While other nations debate frameworks, South Korea is deploying capital. It signals a shift from viewing crypto as a speculative asset class to treating it as critical national infrastructure—a bet on financial sovereignty in a digital age. The implicit message to Wall Street and traditional finance? Adapt or get bypassed.
### A Calculated Gamble with Public Funds
The scale is unprecedented. Allocating such a massive portion of the state budget transforms crypto from a private-sector experiment into a public-sector mandate. It brings immense liquidity and legitimacy but also ties the nation's fiscal health directly to the volatility of digital markets. One cynical finance veteran might note it's the ultimate 'when-in-a-hole, keep-digging' strategy—just with blockchain shovels. Whether it's visionary or reckless will be written in the ledger, for all to see, by 2030.
South Korea’s government to revise digital assets laws
The South Korean government is expected to revise the current National Treasury Fund Management Act to establish a legal framework for deposit token distribution and payments. The Act excludes deposit tokens from the definition of the national treasury funds.
The SK government also plans to expand the distribution of deposit tokens and payment infrastructure to include electronic wallets that can store these tokens. It will LINK the deposit token system with the National Fiscal Integrated Information System (dBrain) to digitize the execution, distribution, and settlement of the national treasury fund.
Meanwhile, an official from the Ministry of Economic and Finance revealed that the SK government is considering linking deposit token systems with retail store POS (Point of Sale) systems. It aims to establish a regulatory framework to institutionalize stablecoins after the Virtual Asset Phase 2 Bill (Digital Asset Basic Act) is finalized.
“We plan to use fiscal policy more proactively to drive a major transformation.”
–Koo Yun-cheol, Deputy Prime Minister and Minister of Economy and Finance
The South Korean Financial Services Commission is also expected to lead the follow-up legal revisions, with the country’s National Assembly currently reviewing a proposal that requires stablecoin issuers to maintain a capital of ~$3.43 million (~5 billion KRW). The issuers are also expected to deposit 100% of issued balances in government bonds, which are highly liquid reserve assets.
BOK revives CBDC program for subsidy distribution
The Bank of Korea (BOK) recently announced that it is reviving its CBDC program to help test the distribution of subsidies. The second phase of the temporarily suspended CBDC experiment was delayed by discussions on the Korean Won stablecoin bill.
An official from the Economy and Finance Ministry also stated that the ministry is reviewing how stablecoins could be used or restricted in foreign exchange transactions. The ministry aims to push for regulatory revision this year and specify the direction these legal revisions will take.
Meanwhile, the second phase of the Hangang Project is expected to focus on distributing government subsidies. South Korea allocated nearly $7 billion (~10.3T KRW) in cash handouts and over $400 million in regional gift certificates to promote local spending.
A BOK official also stated that the Hangang Project will help boost the South Korean government’s efficiency in distributing funds while reducing distribution and management costs. The SK government currently distributes subsidies using credit cards linked to residents, local government-issued vouchers, and bank accounts. However, local lenders have started preparing for the new CBDC pilot program. Many have also set up systems to support the distribution of the digital Won.
South Korea’s CBDC project has been paused at least twice since the first pilot four years ago. The recent pause followed the new administration’s shift in focus to stablecoins, which also led to the renaming and refocusing of the original CBDC team.
Claim your free seat in an exclusive crypto trading community - limited to 1,000 members.
