South Korea to modify 76-year-old law to classify cryptocurrencies as national assets

Legal Framework Update

South Korea plans to revise its 1950 National Property Act to classify virtual currencies and intellectual property as national assets and modernize management of state-owned property. The proposal contemplates creating a broader legal framework for managing state-owned assets, according to the Ministry of Economy and Finance’s economic policy roadmap released Wednesday.

Tokenization Pilot Programs

The government will pilot tokenized government bonds in 2027, explore tokenizing state-owned real estate for retail investors, and link these systems to the Bank of Korea’s central bank digital currency infrastructure.

The ministry reiterated plans to start a pilot program for tokenized government bonds in 2027, saying blockchain technology has the potential to reduce transaction costs and speed up transfers. Officials are also studying the tokenization of state-owned real estate to allow retail investors to participate and share in investment returns, according to the plan.

Broader Blockchain Integration

The announcement builds on South Korea’s broader push to bring blockchain into public finance. Earlier this year, the Finance Ministry said it would begin testing tokenized deposits for government spending in the fourth quarter. The Bank of Korea has already started trials of its central bank digital currency (CBDC) with commercial banks.

The government said it plans to connect tokenized government bonds to the Bank of Korea’s CBDC infrastructure during the 2027 pilot and will study interoperability between the central bank’s blockchain network and other distributed ledger platforms.

Legal Recognition for Blockchain Ledgers

Legal amendments taking effect Feb. 4, 2027, will give blockchain-based ledgers formal recognition as security registries under the Capital Markets Act and the Electronic Act.

Market Context

CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.