SOUTH KOREA Law and Practice Contributed by: Wooyoung Choi, Suhhee Han, Seonghwan Ju and Matt Younghoon Mok, Lee & Ko
Lee & Ko Hanjin Building 63 Namdaemun-ro Jung-gu Seoul 04532 South Korea Tel: +82 2 772 4000 Fax: +82 2 772 4001 2 Email: mail@leeko.com Web: www.leeko.com
1. Overview of Blockchain and Crypto- Assets 1.1 Blockchain 1.1.1 Evolution of Uses of Blockchain Use of Blockchain in Korea Blockchain technology can broadly be categorised into the following. • Virtual assets: the most representative application of blockchain technology is virtual assets (crypto- currencies). Recently, discussions regarding stable- coins have become particularly active. • Tokenised securities: these refer to securities under the Korean Capital Markets Act (CMA) that are digitised using distributed ledger technology (DLT). In the past, fractional investment services (such as investments in real estate or music copyrights) were provided through the regulatory sand- box framework as innovative financial services, although rights recorded on distributed ledgers were not legally presumed valid even in such cas- es. However, following amendments to the CMA and the Electronic Securities Act (ESA) in February 2026, a regulatory framework for the issuance and distribution of tokenised securities was estab- lished. In particular, records on distributed ledgers are now granted legal effect, including presumptive validity of rights under the ESA. The amendments are scheduled to take effect on 4 February 2027. • CBDCs/deposit tokens: discussions regarding the introduction of a CBDC (Central Bank Digital Cur- rency) are actively underway, and deposit tokens capable of payment and transfer within CBDC
systems have been issued through designation as innovative financial services. Deposit tokens refer to bank deposits tokenised into digital assets on distributed ledgers, which can be used for the purchase of goods and services. The Bank of Korea conducted CBDC pilot projects from 2024 to 2025 to verify whether digital currency and deposit tokens could function smoothly through- out the entire lifecycle of manufacturing, issuance, dis- tribution, redemption, and disposal (Project Hangang Phase 1), and also carried out real transaction testing. In March 2026, the Bank of Korea announced plans to proceed with Project Hangang Phase 2, which aims to establish the foundation for the formal adoption of digital currency systems and the commercialisation of deposit tokens. • Certification/authentication: blockchain and decentralised identity (DID) technologies are being considered for use in mobile identification cards, qualification certificates, electronic documents, and public service authentication. Korea’s three major mobile carriers – SK Telecom, KT Corpora- tion, and LG Uplus – provide the PASS mobile driver’s licence verification service. Initially intro- duced through the Information and Communication Technology (ICT) regulatory sandbox framework, the service was later granted the same legal valid- ity as physical driver’s licences following amend- ments to the Road Traffic Act. • Intellectual property: efforts to combine intellectual property with blockchain technology are actively expanding, particularly in the entertainment and IT
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