South Korea's National Asset Act — 'Virtual Assets' Officially Enter the National Treasury

Virtual assets are being officially added as national assets to South Korea's 1.4 quadrillion KRW 'national treasury.' For the first time in 76 years, the government has decided to scrap old legislation and enact a new 'National Asset Act.' We are moving away from an era of simply locking up and preserving assets, transitioning to a proactive approach where the state actively creates value using virtual assets.

A Major Reform After 76 Years: Adding 'Coins' to National Assets

How has South Korea managed its national assets until now? According to reports from the Seoul Economic Daily, the Ministry of Economy and Finance has decided to repeal the outdated State Property Act, which dates back to 1950, and establish an entirely new National Asset Act. The core of this reform lies in a 180-degree shift in the nation's asset management paradigm.

While the existing approach focused on passive measures—keeping assets locked away to avoid loss before eventual disposal—the future direction focuses on active investment to grow value. As part of this, virtual assets are officially being added to the scope of national assets.

What is particularly interesting is how the state will handle confiscated virtual assets. Previously, crypto seized from criminal organizations was often left idling in cold wallets or sold off in a rush. Now, it will be officially recognized as a national asset and used as a tool to create value.

Tokenizing National Land for Investment and Managing Public Funds via Blockchain

According to reports by Yonhap News, this legal reform goes beyond mere declaration, containing very concrete plans to change our daily lives. Most notable is the plan to issue state-owned real estate as Security Token Offerings (STOs). Simply put, the idea is to break down national assets like buildings or land into tokens so that ordinary citizens can invest in small amounts and share the profits.

It doesn't end there. In alignment with the Bank of Korea's Central Bank Digital Currency (CBDC) project, the government has announced plans to execute 25% of the national treasury funds via blockchain-based deposit tokens by 2030. It is a bold, highly anticipated move to manage a quarter of the national budget more transparently and efficiently on a blockchain network.

Another Pillar for the Crypto Market: The Digital Asset Basic Act

The government isn't just changing the laws governing the national treasury; it is also preparing to rewrite the rules for the private crypto market we interact with every day.

According to reports by KuCoin, the government is preparing a 'Digital Asset Basic Act' with the goal of enactment by the second half of 2026. This law is expected to be another key pillar for making the private market safer and more systematic.

The most eye-catching part is the plan to establish clear regulations for stablecoin issuers and amend the Capital Markets Act to pave the way for the launch of spot Bitcoin ETFs. Our investment environment will likely change significantly once institutional integration begins in earnest.

Points to Watch

This legal reform is significant because it marks the start of South Korea treating virtual assets as an official national asset rather than a mere tool for speculation. Now that the state is actively recognizing and utilizing virtual assets, the pace of the domestic market's integration into the institutional sphere is expected to accelerate.

The key points to watch moving forward are the National Assembly's legislative schedule and when the first pilot project for state-owned real estate STOs will launch. It will be interesting to continue observing the new changes brought about by the deep integration of blockchain into the national treasury.

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