News linked to both this project and an event.
According to reports from Seoul Economic Daily, the overseas KRW-denominated stablecoin KRWQ has removed tokenized Korean Treasury Bonds (KTB) from its reserve assets, approximately six months after their inclusion. KRWQ's reserves currently consist only of two USD stablecoins: USDC and frxUSD. KTB was co-issued by Shinhan Securities and the RWA tokenization platform Etherfuse, with underlying assets comprising Korean government bonds with maturities of one year or less. Shinhan Securities stated that upon learning KTB was used as a reserve asset, it considered the move a compliance risk and directed Etherfuse to remove it, while emphasizing that there is no cooperative relationship between Shinhan Securities and KRWQ. Previously, KRWQ had promoted itself as "the first KRW stablecoin to adopt tokenized Korean government bonds as reserve assets," and the project continues to face scrutiny over money laundering allegations.
Odaily News – The Gwangju Metropolitan Police Agency in South Korea arrested 4 Uzbek nationals in April under the Prohibition of Funding for Terrorist Acts Act. Among them, the principal suspect has been indicted, detained, and is standing trial, while the other 3 are under investigation without detention; one individual has been placed on an Interpol Red Notice.Police allege that between August 2024 and April 2025, the principal suspect transferred 4,267 USDT in 7 separate transactions to Katibat Tawhid wal Jihad (KTJ), a Syria-based organization. Founded in 2014, KTJ is primarily composed of Central Asian militants and has been designated as a terrorist organization by both the United Nations and the United States.The investigation shows that the principal suspect also received cryptocurrency from KTJ and used it to purchase 11 used cars and 2 excavators, with a total value of 170 million KRW (approximately $121,000), and shipped the vehicles to Syria. The other 3 individuals are suspected of assisting with the procurement and export.Police stated that this case, which involves receiving cryptocurrency from a terrorist organization, purchasing and supplying vehicles, is the first of its kind in South Korea. The investigation also revealed that the principal suspect used 3 personal wallets and deposited vehicle payments into an account under his spouse's name. The case remains under investigation. (Decrypt)
Odaily News – After South Korea raised capital thresholds and added trading restrictions, the leveraged trading capital previously concentrated in Samsung Electronics and SK Hynix has contracted notably. However, some market participants worry that the restricted leveraged capital may shift toward index-based or overseas leveraged ETFs, and the effectiveness of the regulatory measures still requires further observation.Looking at specific targets, eight products linked to SK Hynix saw net selling of approximately 1.2415 trillion KRW, while eight products tied to Samsung Electronics recorded net selling of around 531.6 billion KRW.The cooling in trading activity is equally pronounced. The aforementioned 16 products posted an average daily trading volume of roughly 11.6787 trillion KRW from their listing in May through July 30. Since August, this has dropped to about 1.0059 trillion KRW, a decline of more than 90%, now equivalent to only about 8% of the level seen before the regulatory measures were implemented.The regulatory tightening began on July 31. South Korea's financial regulators raised the base margin threshold for single-stock leveraged ETFs from 10 million KRW to 30 million KRW; starting August 19, investors are also required to complete simulated trading before transacting in related products. Regulators plan to further increase the minimum trading unit, targeting an adjustment to 20 shares by November. Before the regulations were introduced, single-stock leveraged ETFs had enjoyed strong popularity among South Korean retail investors. Between May 27 and July 30, individual investors cumulatively net purchased approximately 15.2876 trillion KRW across the aforementioned 16 products, with SK Hynix-related products attracting about 9.9365 trillion KRW and Samsung Electronics-related products drawing around 5.3511 trillion KRW. (Newsis)
Odaily News: Dunamu, the operator of Korean cryptocurrency exchange Upbit, has responded to rumors of a US listing, stating that the company has indeed been in contact with the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). However, it has not yet confirmed plans for a US listing, nor has it converted its financial reporting standards to U.S. Generally Accepted Accounting Principles (US GAAP).Dunamu stated that it is currently working with Naver Financial to complete a share swap by December 31. The two companies are valued at 15 trillion KRW and 5 trillion KRW respectively, with a swap ratio of 1 share of Dunamu for approximately 2.54 shares of Naver Financial. Upon completion of the transaction, both parties plan to establish an IPO committee within one year and proceed with listing efforts.Market observers believe Nasdaq could be a potential listing venue, mainly because Naver is already listed on the Korean exchange. If the two companies are subsequently listed on a secondary exchange in Korea as subsidiaries, they may face regulatory restrictions on "parent-subsidiary dual listings." If Dunamu ultimately pursues a US listing, it may do so via American Depositary Receipts (ADRs). The Korean legal entity and Upbit business would remain intact, and services such as KRW deposits and withdrawals for users are not expected to be directly impacted. (Etoday)
According to Yonhap News Agency, Shinhan Asset Management announced on August 21, 2026, that it has signed a four-party memorandum of understanding (MOU) with the Solana Foundation, a global blockchain network, the compliant tokenization issuance platform Etherfuse, and on-chain liquidity infrastructure provider Orca to jointly advance a full-process proof of concept (PoC) for the issuance and circulation of KRW-denominated tokenized funds. Referencing the model utilized by BlackRock's tokenized fund "BUIDL", the global asset management giant, the partnership aims to adapt this framework for KRW assets. The four parties will collaboratively verify KYC/AML compliance frameworks, blockchain operational models, security audit protocols, on-chain liquidity designs, and compliance with domestic and international regulatory requirements, including the Foreign Exchange Transaction Act.
Odaily News: South Korea's venture capital investment reached 8.87 trillion KRW in the first half of this year, setting a new all-time high. Policy financing contributions increased 58.3% year-on-year, while the private sector grew 28.1%, with private funds accounting for over 80% of total venture capital fund commitments. Among them, private financial institutions such as banks contributed 2.61 trillion KRW, up 54.9% year-on-year. The risk weight (RW) for policy-oriented venture capital funds has been reduced from 400% to 100%, thereby lowering the capital burden on financial companies. AI solutions, AI chips, memory chips, and humanoid robots have emerged as new investment destinations, with ICT manufacturing investment surging 143.3% year-on-year and electrical, machinery, and equipment investment rising 90.4%. Companies established within the last three years received 1.83 trillion KRW in investments, up 56.4% year-on-year, while non-capital region investments increased 104.7%. The gaming sector was the only industry to see a decline in investment, with a reduction in large-scale projects and a drop in new business formations cited as the main reasons. The VC industry noted that the KOSDAQ IPO market has not sufficiently absorbed investment exits, and South Korea's Ministry of SMEs and Startups plans to expand support for M&A and secondary share funds. (ETNews Electronics)
Odaily News: The Financial Services Commission of South Korea has announced that it will further raise the investor threshold for single-stock leveraged ETFs and ETNs, with the new rules set to take effect on August 19. In addition to the existing 30 million KRW base margin and 3 hours of prior education, first-time individual investors in leveraged products on single domestic and foreign stocks will also be required to complete simulated trading.In addition, the management standards for deviation rates of ETFs and ETNs will also be comprehensively tightened. The closing deviation rate management range for domestic ETFs and ETNs will be tightened from 3% to 2%, while for overseas products it will be tightened from 6% to 5%. For deviation rates calculated as negative values, they will be computed based on their absolute values. Under the new rules, if the deviation rate exceeds twice the management range, a screening and designation notice will be triggered; if the deviation rate again exceeds twice the range within 10 trading days from the date of the designation notice, or exceeds the standard for two consecutive trading days, the product may be designated as an investment caution item, after which a call auction will be conducted for 3 trading days.The Financial Services Commission explained that the tightened regulation is due to the negative compounding effect of single-stock leverage products, where investors may incur losses even if the underlying asset remains flat, and it hopes investors will fully understand the product structure and risks before making actual investments. (Yonhap)
The South Korean State Council approved the Amendment to the Enforcement Decree of the Specific Financial Information Act, expanding the crypto asset Travel Rule from currently applying only to transfers above 1 million KRW to all transfers to prevent splitting transactions to evade regulation. The new regulations also tighten VASP admission, expand the scope of major shareholder review, and add new financial requirements such as a debt ratio not exceeding 200%; transfers with overseas exchanges and personal wallets will be managed differentially according to risk levels, and high-risk transactions may be prohibited. The Travel Rule and related regulations will be implemented six months after publication.
Odaily News: SK Hynix's stock price has recently seen a pullback. On August 3, the stock fell 8.79%. Although it rebounded slightly by 0.64% and 5.77% on August 4 and 5 respectively, it plunged another 10.37% on August 6, closing at 1.495 million KRW; on August 7, it dropped a further 4.88%, closing at 1.422 million KRW.Against the backdrop of heightened market volatility, SK Group released an advertisement quoting founder Choi Jong-gun’s famous saying: "Despair and hope are two sides of the same coin; you can turn despair into hope as easily as flipping your palm," and adapted it to: "Unease and anticipation in the AI era are also two sides of the same coin; you can turn unease into anticipation," thereby conveying confidence in the long-term development of the AI industry.Securities institutions believe that short-term stock price fluctuations have not changed SK Hynix's fundamentals, and the market should focus on its HBM4 technology leadership and the earnings stability brought by long-term supply agreements (LTAs). Specifically:1. Hyundai Motor Securities expects SK Hynix's DRAM and NAND bit growth to reach 9.7% and 1.5% respectively in the third quarter. As HBM4 sales contributions expand, even with a higher proportion of LTAs, DRAM average selling prices (ASP) are still expected to rise 19.9% quarter-over-quarter. Companies such as OpenAI and Anthropic are advancing plans to build their own hyperscale AI data centers and intend to raise funds for related construction through IPOs. Even if some large tech companies adjust capital expenditures (Capex) in the future, this could be offset by demand from other AI infrastructure. Additionally, regarding competitive concerns over China's CXMT, given the U.S. continued tightening of semiconductor equipment export restrictions, as well as Micron's expansion of domestic U.S. investment, the likelihood of major companies like Apple adopting Chinese memory chips is relatively low.2. SK Securities is also bullish on SK Hynix's competitive advantages, believing that with its leading position in HBM, partnerships with major North American GPU companies, and AI-driven LTA demand, SK Hynix's market position remains solid. Currently, the HBM supply-demand fulfillment rate is below 70%, and the core value of LTAs lies in ensuring profit sustainability and earnings stability through a "mutual binding structure" between customers and suppliers. With value-reassessment initiatives such as an ADR listing progressing, along with dividend income from the sale of SPC assets related to Kioxia, the company's goal of achieving net cash of 100 trillion KRW may be reached earlier than expected. As shareholder return policies gradually become clearer, this will help the market re-evaluate the value of the LTA model and drive a further re-rating of SK Hynix. (Daum)
Odaily News: One week after the implementation of regulatory measures on single-stock leveraged and inverse ETFs in South Korea, trading activity in related products has noticeably cooled, with trading volume falling below 1 trillion KRW for two consecutive trading days.According to data from the Korea Exchange (KRX), on August 7, the combined trading volume of 16 single-stock leveraged and inverse ETFs in the Korean market stood at 941.2 billion KRW, marking the second consecutive trading day below 1 trillion KRW after the previous day's 919.8 billion KRW.Market observers believe the decline in trading volume is mainly attributed to the new regulatory measures implemented on July 31. The new rules raise the capital threshold for ordinary retail investors to participate in single-stock leveraged ETFs, increasing the base margin requirement from 10 million KRW to 30 million KRW in cash.Data shows that on the day before the regulation took effect (July 30), the trading volume of the 16 related ETFs reached as high as 12.45 trillion KRW. On the first day of regulation (July 31), it plummeted to 3.15 trillion KRW, and has continued to decline since, dropping to 1.39 trillion KRW and 1.26 trillion KRW on August 3 and 4 respectively, before falling below 1 trillion KRW in recent days.Meanwhile, the share of single-stock leveraged and inverse ETFs in the overall Korean ETF market turnover has also dropped significantly, falling to 5.6% on August 7, compared with 30% to 40% before the regulation.However, Korean securities institutions point out that investment demand has not completely disappeared. Instead, there is evidence of "regulatory arbitrage" or a "balloon effect," with funds shifting toward semiconductor leveraged ETFs and overseas-listed leveraged products.Jung Hyun-jong, a researcher at Korea Investment & Securities, stated that while single-stock leveraged ETF trading volumes have declined following the regulation, semiconductor leveraged ETF trading volume has actually increased, indicating that some capital is rotating into alternative products. Overseas market products may also become targets for capital flows. Jung noted that since overseas-listed ETFs are not subject to domestic Korean regulatory restrictions, investors may turn to overseas single-stock leveraged ETFs. Among them, the Hong Kong-listed CSOP SK Hynix Daily (2x) Leveraged Product is currently one of the largest single-stock leveraged ETF products globally by market capitalization. Domestic Korean regulatory measures alone are unlikely to fully curb investor demand for semiconductor cycles and high-leverage strategies, and the long-term effectiveness of the regulation will require continued observation. (Daum)
Odaily News With the end of the "Quiet Period" following SK Hynix's U.S. ADR listing, the market has begun to focus on whether the company will introduce shareholder return policies, including a stock split. Among these, the possibility of a "split" against the backdrop of high stock prices has become a key topic of discussion. Recent sentiment circulating in the Korean market suggests that SK Hynix may follow the precedent set by Samsung Electronics, promoting a stock split after continued share price gains to lower the per-share price and expand participation from individual investors. However, such claims have not yet been officially confirmed by the company.Park Seok-hyun, Deputy Head of the WM Products Division at Woori Bank, stated on YTN Radio on the 5th that there is "currently no clear basis" for an SK Hynix stock split, but it "cannot be considered entirely impossible." While SK Hynix's current par value is relatively low and whether there is room for another split is debated, a stock split is not completely out of the question as the share price continues to rise.He noted that following the listing of SK Hynix's ADR on the U.S. market in July, newly listed companies typically undergo a "quiet period" of about 25 days, during which major policy changes are rarely announced. That period ended on August 4th."The end of the quiet period means SK Hynix has entered a phase where it may announce important financial policies. The recent uptick in market discussions about stock splits and dividend increases may be linked to this timing," Park said.Market observers believe SK Hynix's current stock price is already at a high level on the Korean exchange. As of the close on the 5th, the company's stock was trading at 1.668 million KRW per share, a relatively high unit price. If a stock split were implemented in the future, it could lower the investment threshold and boost trading activity among retail and overseas investors.Additionally, Park noted that SK Hynix's profitability has improved significantly in recent years, and the company may also strengthen shareholder return policies in the future, including raising dividend levels. If such policies materialize, they could further increase interest from U.S. market investors in its ADR.However, SK Hynix has not yet made any official announcements regarding a stock split or adjustments to its dividend policy, and market speculation still awaits confirmation from the company's board and official sources. (Daum)
Odaily News: Domestic stablecoin funds in South Korea continue to flow to overseas exchanges. Data from the Financial Supervisory Service shows that in June 2026, the volume of stablecoins transferred from South Korea's top five crypto exchanges to overseas exchanges reached 2.7625 trillion KRW, while inflows amounted to 2.2022 trillion KRW, resulting in a net outflow of approximately 560.3 billion KRW (around $367 million).Data indicates that from January 2025 to June 2026, net outflows of stablecoins to overseas exchanges have exceeded inflows for 18 consecutive months. In the second quarter of this year, South Korea's net stablecoin outflow reached 1.6872 trillion KRW, while during the same period, net selling of overseas stock investments totaled 1.6185 trillion KRW. Analysts believe that stablecoins flowing overseas are primarily used for cryptocurrency derivatives unavailable on domestic exchanges, spot and futures products related to Korean stocks, as well as services such as RWA and DeFi.A South Korean lawmaker stated that capital outflows and high-leverage trading overseas have increased risks for investors, and the government needs to strengthen related regulations and protective measures. (Yonhap)
TechFlow News, August 1, according to South Korean media NexBlock, South Korea's virtual asset market trading volume continues to shrink, and the competitive landscape among the five major KRW exchanges is changing. During the market downturn, funds are further concentrating on platforms with leading liquidity, while small and medium-sized exchanges are seeking breakthroughs through cooperation with securities companies, institutional market positioning, and business restructuring. The focus of future competition will no longer be just trading volume, but stablecoin liquidity, traditional financial cooperation, institutional market expansion, and regulatory compliance capabilities. Data shows that in the first half of this year, South Korea's five major KRW exchanges (Upbit, Bithumb, Coinone, Korbit, Gopax) accumulated trading volume of about $366.58 billion, a year-on-year decrease of 54.6%. From July 1 to 27, the five major exchanges accumulated trading volume of about 17.34 trillion KRW, a decrease of 16.9% compared to the same period last month. Among them, Upbit's trading volume was about 11.69 trillion KRW; although down 10%, its market share rose from 62.3% to 67.4%. Bithumb's trading volume dropped to 4.71 trillion KRW, with its share decreasing from 30.7% to 27.1%, expanding the gap between the two to 40.3 percentage points.
According to The Block, South Korea’s Personal Information Protection Commission fined cryptocurrency exchange Bithumb 210 million Korean won (approximately USD 136,000) for transferring users’ personal information to overseas platforms without obtaining adequate user consent.
According to Korea Economic Daily, after completing its U.S. ADR listing, SK hynix plans to implement a shareholder return program worth up to 100 trillion Korean won in Q4 2026, comprising share buybacks and cash dividends. The share buyback is reportedly expected to amount to approximately 2% of the company’s total outstanding shares. The report notes that SK hynix aims to leverage its ADR listing to secure a corporate value re-rating in global capital markets while simultaneously increasing investments in AI infrastructure.
According to The Korea Business, South Korean police are investigating domestic users of Polymarket—the world’s largest prediction market platform—for alleged violations of Article 246 of the Criminal Act (gambling offenses), which carries a maximum fine of KRW 10 million. This investigation—led by the Gangwon Provincial Police Agency upon delegation from the National Police Agency—is the first criminal probe targeting Polymarket users in South Korea, covering users nationwide. It is reported that South Korean users placed bets on the platform using USD-pegged stablecoins, with no restrictions imposed by the platform; for instance, the June 3 local elections alone attracted hundreds of billions of won in betting volume.
According to Yonhap News Agency, on June 1, the Incheon Metropolitan City Election Commission formally filed a complaint with the Incheon Police Agency against Yoo Jeong-bok, the presidential candidate of the People Power Party for Incheon mayor, citing violations of the Public Official Election Act. Yoo is accused of submitting false information in his candidate asset disclosure: his spouse’s actual assets amount to approximately 518.57 million KRW—significantly higher than the declared amount of 439.88 million KRW—and their combined household assets should total approximately 1.92297 billion KRW, not the declared 1.84472 billion KRW. Earlier media reports indicated that his spouse held 21,000 units of virtual assets and transferred them to overseas exchanges to evade local election asset disclosure obligations. The Incheon Police Agency’s Anti-Corruption Investigation Unit will merge this complaint with a related case previously filed by the Democratic Party of Korea for joint investigation.
OKX Ventures, the investment arm of OKX, announced it will acquire a 19.6% stake in Coinone, one of South Korea's five licensed digital asset trading platforms. Coinone has signed a strategic equity investment agreement with OKX Ventures, Korea Investment & Securities (KIS), as well as Com2uS and its affiliates.OKX Ventures and KIS will each invest 80 billion KRW ($53 million). Upon completion of the investment and receipt of regulatory approval, both companies will each hold a 19.6% stake in the platform. Together, they will become the third-largest shareholders of the South Korean exchange, trailing only Coinone CEO Cha Myung-hoon (27.8%) and Com2uS Holdings and its affiliates (25%).According to the announcement, the investment will be carried out through a combination of purchasing secondary market shares from Cha and Com2uS, as well as subscribing to newly issued shares. (The Block)
According to Cointelegraph, a petition in South Korea calling for the abolition of the 22% tax on cryptocurrency investment gains has surpassed the 50,000-signature threshold, triggering the mandatory review mechanism of the National Assembly’s Committee on Strategy and Finance. The petition currently has over 52,000 signatures. This tax policy is scheduled to take effect in January 2027. Petitioners argue that taxing crypto assets is significantly heavier than taxation applied to other asset classes, which will increase investors’ burdens, restrict upward mobility—especially for younger demographics—and potentially lead to industry contraction and capital and talent flight. Meanwhile, South Korea’s cryptocurrency market continues to shrink: total crypto asset holdings have declined from approximately 121.8 trillion KRW (about $83.3 billion) in January 2025 to roughly 60.6 trillion KRW (about $41.4 billion) in February 2026. Daily trading volume across the country’s top five exchanges has also plummeted—from $11.6 billion in December 2024 to $3 billion.
According to Korea Economic Daily, Bumo Sarang, South Korea’s seventh-largest pension relief company, invested 59.5 billion KRW of its operating funds last year in Bitmine, an Ethereum-themed stock’s daily double-leveraged ETF, resulting in a loss of 49.3 billion KRW (approximately USD 32.73 million). A comprehensive review of the 2025 audit reports from 75 pension relief companies revealed that 42.7% of these firms hold total assets lower than the prepaid funds owed to their clients—meaning they would be unable to fully refund all clients if all terminated their contracts simultaneously.