Seoul’s Crypto Pivot: South Korea Set to End 9-Year Corporate Investment Ban

Preparations for ending a corporate cryptocurrency investment ban in place since 2017 are being made by the Financial Services Commission (FSC) of South Korea. Listed corporations and professional investors will be permitted under new rules to yearly allocate up to 5% of their equity capital into the top 20 cryptocurrencies by market capitalization, traded on five specified major exchanges. After years of speculative worry, this signals a significant policy change meant at normalising digital assets inside South Korea's financial system.

With corporate trading expected to start before the end of the year, possibly providing access for roughly 3,500 entities, final regulatory approval is expected by February 2026. Exchanges will have to use staggered order execution and rigorous size restrictions to control risk; the eligibility of stablecoins like USDT is still under examination. Closely matching President Lee Jae-crypto-friendly stance, the project is incorporated in the government's 2026 economic growth and innovation plan.

Market players consider the decision a giant step toward capital repatriation and institutional adoption. Regulated crypto exposure may help to turn back into South Korean markets up to 52 billion USD now parked offshore, therefore strengthening Korea's role in the worldwide digital asset environment. Although industry insiders appreciate the new access, they point out that the 5% restriction and risk controls show a careful attitude; probable inflows into Bitcoin and top altcoins will help liquidity and long-term market stability.