Kofia Chairman Seo Yoo-seok Calls for the Approval of Cryptocurrency Spot ETFs and the Formal Recognition of Security Tokens

During a recent New Year's news conference at Kofia's Seoul headquarters, Seo highlighted the potential growth of the virtual asset market

The Korea Financial Investment Association (Kofia) is pushing for the approval of cryptocurrency spot exchange-traded funds (ETFs) and the formal recognition of security tokens by Korean authorities.

During a recent New Year’s news conference at Kofia’s Seoul headquarters, Chairman Seo Yoo-seok highlighted the potential growth of the virtual asset market, influenced by U.S. President Donald Trump’s pro-crypto policies. He suggested that Korea must act swiftly to maintain a competitive position in the global crypto landscape.

“The U.S. Securities and Exchange Commission approved Bitcoin and Ethereum spot ETFs last year, and several products from major asset managers hit the market. Korea should follow suit, ensuring that the country is not left behind,” Seo stated.

According to Seo, these financial instruments could “enhance market transparency, broaden institutional participation, and solidify Korea’s role” as a leader in digital asset adoption.

“Everyone thinks of virtual assets as an investment target for the MZ generation (Millennials + Generation Z), but people in their 50s and 60s also have a lot of interest in and demand for virtual assets. Their funds are larger than those of the MZ generation, but I wonder if it’s right to let them go straight to virtual assets. That’s why I think we need to list an ETF that is recognized worldwide, at least based on Bitcoin and Ethereum, in our market so that investors can invest comfortably and with peace of mind,” the Kofia chairman added during the conference.

Kofia plans to engage with financial regulators this year, advocating for the inclusion of Bitcoin and Ethereum spot ETFs within the nation’s financial framework. By doing so, Korea could attract greater institutional investment, enhance liquidity, and promote a more “robust digital asset ecosystem.”

“The inauguration of the second Trump administration is expected to further boost global virtual asset market-related businesses. To ensure that Korea keeps up with the trend, I will continue to support the institutionalization of security tokens and push for the approval of virtual asset ETFs,” Seo stated, as reported by a local news media.

In addition to crypto initiatives, Seo also touched upon Kofia’s role in the government-led “Value-up” program during the news conference. Introduced last year, this policy aims to address the perceived undervaluation of domestic stocks, known as the “Korea discount.”

Seo described it as a comprehensive effort to promote qualitative economic growth, strengthen the financial market, and expand citizens’ financial assets. He called for collaboration between the government, the National Assembly, and the private sector to ensure the program’s success.