South Korea’s Ministry of Economy and Finance announces a pilot for a “Blockchain Treasury,” launching in Sejong City in the fourth quarter

On April 16, the Ministry of Economy and Finance of South Korea announced that the “Blockchain Digital Currency-Based Treasury Funds Pilot Project” has been selected as a regulatory sandbox program hosted by the Office of National Affairs Coordination in 2026. According to the ministry’s announcement, the pilot scheme allows government agencies to use blockchain “deposit tokens” to cover some commercial promotion expenses, replacing the current government procurement card. The plan is to prioritize implementation in Sejong City in the fourth quarter of 2026, and expand the scope afterward based on an evaluation of results.

Pilot Framework: Deposit Tokens Replace Government Procurement Cards

According to the Ministry of Economy and Finance’s April 16 announcement, the core mechanism of the pilot is to use blockchain deposit tokens to replace government procurement cards (credit cards and financial cards) for paying commercial promotion expenses incurred by government agencies. Under the current system, relevant expenses are executed using government procurement cards, and use during restricted time periods such as late nights and weekends requires post-hoc management through phone calls.

In the announcement, the Ministry of Economy and Finance said that using deposit tokens to cover commercial promotion expenses enables advance management of available time periods and applicable industry scopes, improving transparency in fund usage. It also reduces the cost burden on small businesses through an intermediary-free payment structure.

Regulatory Framework: Regulatory Sandbox Exemption from Current Regulatory Constraints

According to the Ministry of Economy and Finance’s announcement, the current “Act on the Management of National Finance Funds” stipulates that day-to-day operating expenses of government agencies (including commercial promotion expenses) must be handled through government procurement cards, and the use of deposit tokens under the existing regulatory framework is limited. The core function of this regulatory sandbox is to establish a lawful basis for testing deposit tokens as a demonstration, beyond the limitations of current regulations.

The announcement states that this is the first case of a “planned regulatory sandbox,” directly led by the Ministry of Economy and Finance, covering system review, company selection, and end-to-end operational processes. The goal is to systematically validate a treasury execution model based on digital currency.

Pilot Background: South Korea’s Ministry of Economy and Finance Second Blockchain Trial

According to the Ministry of Economy and Finance’s announcement, this pilot is the ministry’s second time using blockchain technology to execute treasury funds. The first pilot began in March this year and provided blockchain deposit token subsidies to companies that have installed electric vehicle charging stations.

The Ministry of Economy and Finance’s announcement explains that the next step will involve selecting participating companies and working with relevant organizations to determine the scope of the demonstration. The official pilot is set to be implemented with priority in Sejong City in the fourth quarter of 2026.

Frequently Asked Questions

When will the blockchain pilot program announced by South Korea’s Ministry of Economy and Finance be implemented, and what is the priority location?

According to the Ministry of Economy and Finance’s April 16 announcement, the pilot program is expected to begin with priority in Sejong City in the fourth quarter of 2026, and subsequent arrangements will be made to expand the scope of application based on an evaluation of pilot results.

How does this pilot proceed under the restrictions of the current “Act on the Management of National Finance Funds”?

According to the Ministry of Economy and Finance’s announcement, the current “Act on the Management of National Finance Funds” requires that operating expenses of government agencies must use government procurement cards, and the use of deposit tokens is limited. Through the 2026 regulatory sandbox mechanism, this pilot obtains a regulatory exemption, establishing a demonstration basis for the use of deposit tokens for government payments.

Is this pilot the first blockchain treasury pilot by South Korea’s Ministry of Economy and Finance?

According to the Ministry of Economy and Finance’s announcement, this is the ministry’s second blockchain treasury pilot. The first pilot began in March 2026, targeting companies that have installed electric vehicle charging stations, providing subsidies in the form of blockchain deposit tokens.