South Korea maintains blockchain economy push as AI takes center stage

South Korea's Ministry of Finance and Economy has reiterated its commitment to growing the local blockchain and digital asset economy, despite a stronger emphasis on AI development.

At Monday's State Council meeting, the ministry outlined plans to foster the blockchain economy as part of the country's economic growth strategy for the second half of 2026. These include promoting large-scale blockchain pilot projects and new technologies to strengthen competitiveness in the digital asset ecosystem.

To expand the use of blockchain in financial infrastructure, the government plans to launch a pilot project for tokenizing government bonds linked to an institutional central bank digital currency (CBDC) project, slated for 2027. The Bank of Korea will also examine ways to ensure interoperability between the CBDC and other blockchains.

In an effort to boost the private digital asset sector, South Korean authorities will advance the proposed Digital Asset Basic Act for enactment in the second half of the year. The legislation, which has been in the works since mid-2025, is expected to lay out the basic legal framework for digital assets, including rules of business conduct and a set of rules for Korean won-pegged stablecoins.

In conjunction with the legislation, the ministry said it will establish a legal basis for cross-border stablecoin transactions and support revisions to the Capital Markets Act to enable the launch of the country's first-ever spot cryptocurrency exchange-traded funds.

Furthermore, the government will explore ways to manage and trade Global Voluntary Carbon Market (GVCM) credits on the blockchain, in cooperation with international organizations.

AI focus

Meanwhile, South Korea's H2 2026 plan placed greater emphasis on AI development by officially designating physical AI, AI data centers, and semiconductors as the country's three "Mega Projects."

South Korea plans to accelerate semiconductor production with 800 trillion won ($535.6 billion) in investments to build new fabrication facilities in the southwest region to serve as a second major production base alongside existing facilities in the capital region. 

It also aims to double memory chip production capacity within five years. Complementing this, the government will push forward the establishment of a global AI hub designed to attract international organizations and multilateral development banks, alongside large-scale AI data center construction.