South Korea Overhauls State Asset Management, Plans Tokenized Government Bonds and Real Estate

South Korea’s Ministry of Economy and Finance is pursuing a major overhaul of the state asset management system. It plans to enact a Framework Act on State Assets to replace the outdated State Property Act, which has been in force since 1950. The proposed legislation would formally bring digital assets and intellectual property rights into the state asset management framework, replacing an approach focused largely on preserving and selling physical real estate. Amid the global digital transformation, the move represents the government’s formal recognition of the national value of new forms of virtual and intangible assets.

Under the South Korean government’s latest policy, officials expect to launch a pilot program in the fourth quarter of 2026 using tokenized deposits to pay government operating expenses. Amendments to the Capital Markets Act and the Electronic Securities Act are scheduled to take effect on February 4, 2027, giving blockchain ledgers legal recognition. The Ministry of Economy and Finance also plans to pilot tokenized government bonds in 2027 to reduce transaction costs, while exploring the tokenization of state-owned real estate to give retail investors access to a share of the returns.