South Korea's Ministry of Economy and Finance announced plans to revise the 1950 National Property Act to classify virtual currencies and intellectual property as national assets, with legal amendments taking effect February 4, 2027. The revision forms part of an economic policy roadmap that will recognize blockchain-based ledgers as security registries under the Capital Markets Act and the Electronic Act. The government is modernizing a 76-year-old asset management framework built after the Korean War to formally accommodate digital value and blockchain infrastructure in state property classification.
South Korea Revises National Property Act to Include Digital Assets
The proposed revision to the National Property Act will bring virtual currencies and intellectual property formally within the scope of South Korea's national asset classification. The 76-year-old asset management framework has never had to address digital assets until this reform. The Ministry of Economy and Finance released the economic policy roadmap as part of a broader push to modernize state-owned property management.
Legal amendments effective February 4, 2027, will formally recognize blockchain-based ledgers as security registries under both the Capital Markets Act and the Electronic Act. Once blockchain ledgers carry the same legal standing as traditional security registries, transactions recorded on those ledgers will have enforceable standing in the country's financial and legal systems. Including digital assets in the national registry creates legal infrastructure for the government to hold, manage, and tokenize those assets under a recognized framework.
Government Launches Tokenized Bond and Real Estate Pilots in 2027
South Korea's tokenized government bond pilot is scheduled for 2027, with the Ministry citing blockchain technology's potential to reduce transaction costs and accelerate settlement times in public finance. The Finance Ministry confirmed it will begin testing tokenized deposits for government spending in the fourth quarter of the current year, setting up groundwork before the larger bond program launches in 2027.
Officials are studying how to allow retail investors to participate in state property investment returns through tokenized ownership structures of state-owned real estate. Details on how retail participation would be structured, regulated, or protected remain under study. The proposal would mark a shift in who gets access to returns from government-held real estate, traditionally an asset class reserved for institutional players.
Bank of Korea Integrates CBDC Infrastructure with Tokenized Assets
The government stated its intention to connect tokenized government bonds to the Bank of Korea's CBDC infrastructure during the 2027 pilot. The Bank of Korea has already begun trials of its CBDC with commercial banks. Plugging tokenized government bonds into that infrastructure during the pilot would provide a tested settlement rail rather than building one from scratch.
The government is studying interoperability between the central bank's blockchain network and other distributed ledger platforms. South Korea is building state-level digital asset infrastructure that runs from legal classification through the National Property Act, through market law via the Capital Markets Act and Electronic Act, down to the settlement layer anchored by the Bank of Korea's CBDC.
FAQ
What changes will South Korea make to its National Property Act?
South Korea plans to revise the 1950 National Property Act to classify virtual currencies and intellectual property as national assets, with legal amendments taking effect February 4, 2027.
When will South Korea pilot tokenized government bonds?
The government will pilot tokenized government bonds in 2027, with plans to link them to the Bank of Korea's CBDC infrastructure during that program.
How will blockchain be legally recognized in South Korea's financial laws?
Legal amendments effective February 4, 2027, will give blockchain-based ledgers formal recognition as security registries under both the Capital Markets Act and the Electronic Act.
