Korea Exchange (KRX) is moving to expand into digital assets, with Chairman Jeong Eun-bo announcing plans to introduce crypto-linked derivatives as part of a broader strategy to position Busan as a global financial hub. The plan is contingent on regulatory change: under current South Korean law, crypto assets are not classified as qualifying underlying securities, meaning crypto ETFs and derivatives cannot yet be listed.
According to a local report, speaking at the 30th Anniversary Ceremony of the Derivatives Market held in Busan on May 6, 2026, Jeong emphasized the exchange’s commitment to innovation and global competitiveness. “We will actively promote the introduction of related derivatives so that Busan can become a hub for the virtual asset market,” he said.
The initiative is part of a wider effort to elevate Busan as a leading destination for derivatives trading and financial services. Jeong noted that the exchange will work to attract international conferences and strengthen its global presence, while also supporting the local economy through partnerships with universities to develop financial talent.
Building strong derivatives legacy
The announcement comes as South Korea celebrates 30 years of its derivatives market, which began in 1996 with the launch of KOSPI 200 futures.
Since then, the market has evolved into one of Asia’s key derivatives hubs, offering products linked to stock indices, individual equities, currencies, and government bonds.
“Our derivatives market has grown into a representative market in Asia,” Jeong said, highlighting decades of development and industry collaboration.
Growth and global accessibility
KRX has reported strong growth across its markets in recent quarters. According to its consolidated financial results released on April 1, 2026, the average daily trading volume across KRX’s main markets rose from approximately 14 trillion won in April 2025 to over 25 trillion won by December 2025.
The introduction of an after-hours trading market in 2024 has further enhanced accessibility, allowing global investors to participate without time-zone limitations.
Earlier this month, the Financial Intelligence Unit (FIU) signaled a more flexible approach to crypto regulation, announcing plans to meet domestic exchanges after the May 11 legislative deadline.
The discussions aim to address industry concerns around strict transaction reporting requirements and compliance burdens, highlighting ongoing efforts to balance oversight with market growth in South Korea.
Growth phase with digital assets
Looking ahead, the integration of digital asset-based derivatives is expected to open a new chapter for the exchange; though the timeline depends on regulatory developments that are largely outside KRX’s control. South Korea’s Digital Asset Basic Act has been delayed into 2026 and beyond, primarily due to an unresolved dispute between the Financial Services Commission (FSC) and the Bank of Korea over which body should oversee stablecoin issuance. Until that legislation passes and the Capital Markets Act is amended to include crypto as a qualifying underlying asset, KRX cannot list these products regardless of its operational readiness.
But by combining traditional financial instruments with crypto-linked products, the Korea Exchange aims to expand its global reach and diversify its offerings.
Jeong emphasized that the derivatives market will continue to serve as a key pillar of South Korea’s capital markets, with digital assets playing an increasingly important role in its future evolution.
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