South Korea's Crypto Market Shifts from Retail to Institutional Finance
South Korea's digital asset market is undergoing a significant shift from retail-driven trading to institutional finance, according to Factblock CEO Andrew Park. The market, once known for its high volatility and speculation, is now attracting attention from global financial institutions and companies looking to deploy digital assets in the region.
Park notes that the conversation around Korea's crypto market has changed, with global companies now asking about custody, tokenization, stablecoins, payment and settlement infrastructure, regulation, and how to enter the Korean market. This indicates a shift from speculative yield to market access, legal framework compliance, and institutional custody.
The Bank of Korea plans phase 2 trials in late 2026 for deposit tokens integrated with autonomous AI agents, while approximately 3,500 corporate entities now have legal account access to trade digital assets in South Korea. The Financial Services Commission has also laid out a framework to open virtual asset accounts to listed companies and registered professional investors.
Park emphasizes that true institutionalization relies on resolving unglamorous back-office realities, such as account access, custody, payments, settlements, accounting, and compliance. He believes that this is being addressed through new frameworks for digital asset access and infrastructure development.