이 기사는 2022년 03월 17일 07:57 thebell 에 표출된 기사입니다.

South Korea’s virtual asset industry is likely to boom after an election victory by Yoon Suk-yeol as the new administration, which will launch in May, is widely expected to deregulate the industry to further promote its growth.

Yoon’s crypto market pledges include tax exemption of up to 50 million won ($40,407) on virtual asset investment returns, introduction of a digital asset law and permission of initial coin offerings (ICO). His pledges are expected to pave the way for local financial firms to actively carry out the virtual asset business. Yoon also vowed to create a safe investment environment and system to protect digital asset investors.

Korea's progress in the virtual asset industry falls far behind that of other developed countries. The government has banned domestic financial institutions to make direct investments in virtual assets.

The amendments to the Act on Reporting and Using Specific Financial Transaction Information, which took effect in March 2020, imposed requirements on virtual asset operators and financial companies that transact with them, but still lack provisions to institutionalize virtual assets.

Companies in the virtual asset industry are paying attention to Yoon’s pledges like introduction of the digital asset law and allowing ICO and initial exchange offerings (IEO) because the authority will come up with regulations to protect investors while revitalizing the market if virtual assets are legally institutionalized.

Local banks and financial holding companies are hoping to get more active in making investments and carrying out businesses under Yoon's presidency.

The nation’s commercial banks have been gearing up to respond to global cryptocurrency craze over the past few years, mostly through equity investments in custodian firms or establishment of joint ventures as direct investments are banned in Korea.

Shinhan Bank has completed the development of a proof-of-concept, with a global megabank outside of Korea, built on the Hedera network, leveraging stablecoins and focused on international remittances. The lender joined the Hedera Governing Council in April 2021.

Shinhan Bank is a leader in leveraging distributed ledger technology to drive financial innovation. In 2021, the bank invested in Korea Digital Asset Custody (KDAC), an industry consortium of businesses that provide digital-asset custody services and completed a demonstration platform for central bank digital currencies together with LG CNS.

South Korea’s largest bank KB Kookmin Bank established Korea Digital Asset (KODA), the institutional digital asset custody solution, with domestic blockchain company Haechi Labs and blockchain-oriented venture fund Hashed.

Woori Bank set up a digital asset custody joint venture D-Custody with blockchain-based fintech solutions provider Coinplug. Nonghyup Bank also joined the digital asset custody business by making a strategic equity investment in Cardo, a digital asset custodian firm. (Reporting by Hee-yeon Han)