South Korea Redefines Corporate Investment Currency: Stablecoins Left Out of New Guidelines

South Korea’s regulation on corporate investment in cryptocurrencies marks an important turning point. South Korean authorities are finalizing guidelines that will define which digital assets listed companies and professional corporations can use for investment purposes. In this process, the Korean currency establishes its own criteria: stablecoins like USDT and USDC will be excluded from the permitted scope, at least in the initial phase. This decision reflects not only regulatory caution but also a deep legal logic rooted in the country’s Foreign Exchange Transactions Act.

The Legal Framework That Excludes Stablecoins

The main reason for this exclusion lies in the existing regulatory framework. According to the Foreign Exchange Transactions Act, any foreign payment instrument must, in principle, be handled through government-designated foreign exchange banks. Stablecoins, so far, have not been recognized as approved external payment instruments within this legal structure.

Regulators consider the inclusion of USDT, USDC, or similar assets in corporate crypto guidelines to be directly incompatible with the current legal framework. This stance reflects concerns about a scenario where domestic companies could bypass traditional foreign exchange channels.

A partial amendment to the law was introduced to the National Assembly a few months ago, including provisions that would recognize stablecoins as valid means of payment. Until this legislative process is completed, policymakers seem reluctant to authorize these digital currencies within an official corporate investment environment. Therefore, South Korea’s currency maintains a conservative stance while awaiting broader legislative review.

Companies Push for Access: Practice vs. Regulation

Business demand contrasts with government caution. Companies heavily involved in international trade have requested the inclusion of stablecoins in the list of permitted assets, arguing that these assets facilitate faster and cheaper cross-border settlements than traditional methods.

Globally, USDC and USDT are widely adopted in cryptocurrency markets precisely because of this functionality. Cross-border transfers use these digital currencies with reduced costs and unparalleled speed compared to conventional banking systems. For South Korean companies engaged in international business, the prohibition represents a competitive obstacle.

Currently, the domestic market does not offer official digital asset trading accounts for corporate use. This gap has led some companies to adopt informal practices: using personal wallets or opening accounts on foreign exchanges to make stablecoin payments abroad, bypassing formal domestic channels. The growing adoption of these practices, alongside the development of guidelines, has intensified regulatory debate.

Trading Continues Beyond Official Guidelines

An important nuance should not be overlooked: excluding stablecoins from official corporate guidelines does not mean a total ban on trading. Companies will still be able to buy and sell USDT, USDC, or similar assets through informal channels, such as personal wallets or international over-the-counter platforms.

The real limitation concerns what is officially authorized for financial and investment activities within the regulated framework. The expected guidelines will serve as a security perimeter, defining legitimate corporate participation in the domestic cryptocurrency market.

Regulators faced a delicate challenge: to establish clear lines on corporate investment without creating gaps that allow systematic evasion. The solution was to keep stablecoins outside the scope, providing guidance through exclusion rather than tackling the complexity of regulating their informal use. According to sources close to the process, the operational task force has concluded its discussions, and the final format of the rules now depends on the progress of the Digital Assets Basic Law and related legislative revisions.

South Korea’s policy evolution will continue to be marked by the tension between regulatory prudence and the practical demands of the international cryptocurrency market.