Korea’s Crypto Corporate Open-Door Policy: A Liquidity Switchboard for Bitcoin?

South Korea is poised to unlock a $100B+ corporate liquidity valve for Bitcoin, but the new rules may turn the market into a pressure release more than a capital influx.

The Financial Services Commission (FSC) is finalizing a framework allowing listed companies and professional investor corporations to allocate up to 5% of their equity capital into cryptocurrencies.

This applies to approximately 3,500 listed firms and registered professional investors, with eligibility restricted to top-20 market cap cryptocurrencies based on disclosures from Korea’s five major exchanges. Stablecoins like USDT/USDC remain under review for inclusion.

The regulatory guardrails include split-order execution rules and price-range limits to prevent liquidity shocks from large-scale corporate participation.

These measures aim to create a bidirectional liquidity mechanism where corporations can both add and remove Bitcoin, diverging from retail-driven market dynamics.

The FSC’s February 2025 press release outlined collaboration with the Korea Federation of Banks and DAXA to establish compliance standards, signaling a shift from vague policy discussions to operational clarity.

This framework ties into broader capital market modernization efforts, including 24-hour FX trading by July 2026 and MSCI developed-market upgrade goals.

However, the 5% cap and asset eligibility criteria suggest a cautious approach, balancing innovation with systemic risk management. Market participants are now analyzing whether this policy will stabilize Bitcoin’s volatility or amplify short-term price swings through institutional participation.

⚠️ LEGAL DISCLAIMER: This article is for informational purposes only and does not constitute financial or investment advice.