South Korea pilots blockchain-based deposit tokens

The South Korean Ministry of Economy and Finance has selected a new pilot project for the use of blockchain digital currency under the regulatory sandbox framework in 2026. This project will explore the use of deposit tokens to execute business promotion expenses, aiming to test the application of blockchain technology in national financial operations.

Currently, business promotion expenses in South Korea are mainly executed through government procurement cards, and additional explanations are required for use during restricted periods such as late at night or on weekends. Previously, payment methods were relatively singular due to the National Finance Management Act. The approval of this regulatory sandbox creates an exception for the use of deposit tokens. The ministry stated that by setting conditions such as predetermined spending times and industry categories, deposit tokens are expected to enhance execution transparency and alleviate the cost burden on small business owners by removing intermediaries in the payment flow.

The Ministry of Economy and Finance plans to officially launch the pilot in the fourth quarter of 2026, with the first implementation site being Sejong City. In addition, South Korean regulators are simultaneously strengthening oversight of stablecoins, tokenized real-world assets, and automated trading.