South Korea is moving to reclassify crypto trading and brokerage firms as “venture companies,” a status that would grant them access to government subsidies, tax incentives, and financial support.
The Ministry of SMEs and Startups issued a notice on Monday proposing an amendment to its startup law to include Virtual Asset Service Providers (VASPs) under the venture company umbrella.
Companies with venture status in South Korea benefit from a range of perks, including tax reductions and easier access to state-backed financing. These benefits were previously stripped from crypto firms, notably in the case of Dunamu, the operator of Upbit, which faced an $18 million corporate tax bill after its venture certification was revoked.
The proposed revision aims to reverse that, potentially legitimizing the country’s growing digital asset sector.
He has also backed legislative efforts to introduce Korean won-based stablecoins, a move that has already triggered a wave of trademark filings by major financial institutions.
The shift comes as President Lee Jae Myung, who took office last month, ramps up support for the digital finance sector.
In the new proposal, the ministry said that recognizing “innovative, business-viable” crypto service providers as venture firms would broaden the country’s venture ecosystem and help accelerate virtual asset industry growth.
The move came after President Lee Jae-myung’s campaign promise to modernize digital asset rules and boost opportunities for younger investors. The plan outlines implementation measures for spot crypto ETFs and regulatory frameworks for won-based stablecoins in the second half of 2025.
As reported, South Korea’s Financial Services Commission (FSC) has presented a roadmap to the Presidential Committee on Policy Planning proposing the approval of spot crypto ETFs.