South Korea Plans to Use 25% of Budget for Digital Assets by 2030

TLDR

• South Korea plans to allocate 25% of its $499 billion national budget to digital assets by 2030.
• The government will begin distributing funds through deposit tokens starting with EV subsidies in 2026.
• South Korea aims to integrate the Bank of Korea’s CBDC payment system, known as Project Hangang, into its digital asset strategy.
• The government will revise the National Treasury Fund Management Act to establish a legal framework for deposit tokens.
• South Korea plans to introduce electronic wallets to store deposit tokens and link the system to its national fiscal information system.

The South Korean government has announced plans to allocate 25% of its national budget, amounting to $499 billion, toward digital assets by 2030. A large portion of these funds will be distributed through deposit tokens, with the government starting subsidies for electric vehicles (EVs) in 2026. The initiative is part of a broader strategy to modernize financial systems and streamline the distribution of subsidies using digital currency.

Digital Asset Strategy and National Treasury

South Korea’s new digital asset strategy is set to include the Digital Currency Utilization Plan for Advanced National Treasury Fund Management by 2026. The government aims to integrate the Bank of Korea’s experimental central bank digital currency (CBDC) payment system, known as Project Hangang. The goal is to test whether deposit tokens, issued on a central bank blockchain, can circulate and be redeemed effectively.

According to the Bank of Korea, the pilot program will focus on testing the ability of deposit tokens to function as vouchers with limited use cases. The government intends to use these tokens for subsidies and vouchers within the first half of 2026. This step is expected to reduce settlement periods and combat fraud by leveraging blockchain technology for secure, efficient transactions.

South Korea Expands Infrastructure for Digital Payments

In preparation for the launch of digital asset initiatives, South Korea plans to amend the National Treasury Fund Management Act. This legal revision aims to establish a clear framework for deposit token distribution and payments. The current law excludes deposit tokens from the national treasury definition, but the new regulations are expected to address this gap and enable a more robust system for digital assets.

The South Korean government is also working to expand the infrastructure for digital asset payments. This includes linking deposit token systems with the National Fiscal Integrated Information System (dBrain) to enhance the execution and settlement of national funds. The government plans to introduce electronic wallets that will store these tokens, making the process more accessible and streamlined.

Stablecoins and Financial Regulations

In line with its digital asset goals, South Korea’s Financial Services Commission is preparing for a stablecoin regulatory framework. The country’s National Assembly is reviewing a proposal that would require stablecoin issuers to maintain a capital reserve of approximately $3.43 million. Issuers would also be required to back the stablecoins with liquid government bonds.

The Ministry of Economic and Finance has stated it is reviewing how stablecoins could be integrated into foreign exchange transactions. This examination could lead to a regulatory overhaul, specifying the use and restrictions of stablecoins.

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