South Korea to classify digital assets as national property

• South Korea plans to revise its 1950 National Property Act to classify virtual currencies and intellectual property as national assets.
• The updated framework aims to modernize the management of state-owned property and focus on value creation.
• A pilot program for tokenized government bonds is scheduled to launch in 2027.
• The government is exploring the tokenization of state-owned real estate for retail investor participation.
• Legal amendments effective February 4, 2027, will recognize blockchain-based ledgers as security registries.
• The pilot program will explore interoperability between the Bank of Korea's CBDC infrastructure and other distributed ledger platforms.

South Korea is set to modernize its state asset management system by revising the 76-year-old National Property Act of 1950. The proposed changes aim to formally include virtual currencies and intellectual property within the definition of national assets, shifting the focus from traditional real estate to value creation. This initiative is part of a broader strategy to integrate blockchain technology into public finance.

The Ministry of Economy and Finance plans to launch a pilot program in 2027 for tokenized government bonds, anticipating reduced transaction costs and faster transfers. The government is also investigating the tokenization of state-owned real estate to allow retail investors to participate in investment returns. This move aligns with South Korea's established interest in digital assets and its active retail cryptocurrency market.

Further developments include a pilot project in 2027 to connect tokenized government bonds with the Bank of Korea's central bank digital currency (CBDC) infrastructure. The government will study interoperability between the central bank's blockchain network and other distributed ledger platforms. Amendments to the Capital Markets Act and the Electronic Securities Act, set to take effect on February 4, 2027, will provide legal recognition for blockchain-based ledgers as security registries, bringing tokenized assets under the purview of the Financial Services Commission.