South Korea Greenlights Venture Status for Crypto Firms on September 16

South Korea crypto firms will be eligible for venture company status starting September 16, 2025.

The Ministry of SMEs and Startups approved a change to the Enforcement Decree of the Venture Business Act.

The move ends a block that began in October 2018 and restores access to public support programs.

Venture Company Status for South Korea Crypto: Tax Breaks, Credit Guarantees, and R&D Grants

The revised Enforcement Decree removes virtual asset trading and brokerage from the restricted list.

As a result, South Korea crypto firms can apply for venture company status under the standard certification process. The measure places crypto trading and brokerage on the same footing as other tech startups.

Once certified, firms gain access to targeted programs. These include tax breaks, credit guarantees, R&D grants, and broader financing support.

Attorney Ted Koo from LIN said the framework also lets existing venture companies expand into virtual asset trading without losing their status. The change applies at the company level and follows documented criteria.

The Ministry of SMEs and Startups set September 16 as the effective date. Therefore, applications for venture company status can proceed after publication and administrative notice.

The scope covers trading venues, brokerage services, and related blockchain businesses operating in South Korea.

Ministry of SMEs and Startups: Global Shift and User Protection Drove the Reversal

The original 2018 ban targeted speculative activity and excluded South Korea crypto firms from venture company status.

Officials now cite an evolving global market and stronger user protection as reasons for the reversal. The ministry first signaled the lift in July 2025, then finalized language after consultations.

Minister Han Seong-sook called the update a “regulatory improvement” aligned with digital-asset trends. She said,

“We will focus our policy capabilities on creating a transparent and responsible ecosystem to facilitate the smooth inflow of venture capital and the growth of new industries.”

The quote outlines the policy aim without changing supervisory obligations.

The ministry also points to recent rules that raised user protection standards. These include deposit safeguards and trading-abuse provisions adopted in 2025.

Together, these measures form the basis for re-opening venture company status to South Korea crypto firms while keeping compliance requirements in place.

South Korea Crypto by the Numbers: 16 Million Users and Statista Growth Projections

Exchange accounts in South Korea surpassed 16 million as of early 2025. That figure equals over 30% of the national population.

The uptake highlights broad participation in South Korea crypto trading and brokerage platforms.

Market projections also show steady revenue growth. Statista estimates $1.1 billion in 2025 for the South Korea crypto market, rising to $1.3 billion in 2026. These projections track with reported increases in activity across major local platforms.

Policy signals remain active. After the June election of President Lee Jae-myung, lawmakers advanced several digital-asset proposals, including a stablecoins bill.

In parallel,fg authorities set lending-rate caps and limited leveraged loans on crypto, aiming to reduce consumer risks while the Ministry of SMEs and Startups re-opens venture company status.