South Korea Lifts Corporate Crypto Ban in Major Policy Shift

South Korea has dismantled its nine-year prohibition on corporate cryptocurrency investments, marking a watershed moment for institutional participation in digital assets. The Financial Services Commission's new framework permits listed companies and professional investors to allocate up to 5% of equity capital to top-20 market cap cryptocurrencies traded domestically.

This regulatory pivot forms part of the government's 2026 Economic Growth Strategy, which concurrently advances stablecoin legislation and spot crypto ETF approvals. Approximately 3,500 entities are expected to qualify under the revised rules, potentially injecting billions into the KRW-denominated crypto markets.

The decision reflects Seoul's strategic calculus to reclaim leadership in Asian digital finance. 'When regulation catches up with innovation, institutional capital follows,' observes a senior analyst at Meta Era HK, referencing parallel developments in Hong Kong and Singapore.