🔍 What is happening in South Korea
1. Expansion of the venture company category
The Korean government proposed to amend the start-up law (“Special Act on Promoting Venture Businesses”) to allow crypto companies —such as exchanges, virtual asset brokers, and VASP platforms— to be certified as venture companies.
Until now, since 2018, these companies were excluded from this category and placed alongside “restricted” industries such as casinos or nightclubs, which prevented them from accessing certain government benefits.
2. Benefits they will obtain
By being recognized as venture companies, they will be able to access tax incentives: corporate tax cuts, income tax reductions, discounts on taxes related to commercial real estate, etc.
Also access to state financing, credit guarantees, subsidies for research and development, state aid for innovation, etc.
3. When it comes into effect
The reform is being approved to come into effect on September 16, 2025.
The enforcement decree associated with the venture company law will be modified to remove the restriction preventing crypto firms from qualifying.
4. Motivation and context
The crypto ecosystem is considered to have matured: there are already user protection regulations, rules for virtual intermediation, etc.
South Korea, under the current administration, seeks to foster innovation, blockchain technology, digital finance, and be competitive in the digital economy.
⚠️ Risks and what to watch out for
Simply granting the “venture” category does not guarantee success: utility and actual regulation must accompany it.
There may be strict criteria for qualification, audits, heavier oversight, which increases operational costs for some small companies.
Market expectations may be high, so if the benefits are not perceived quickly, there could be disappointment.
