However, the article doesn't say whether the bitcoins will be split into lots and auctioned, or sold as a whole.
I don't see why it would be split into lots. It's not very much for a rich person.
The South Korean government has obviously known that Bitcoin has value for a long time.
They know that perfectly well because they know that these 216 bitcoins were used to
pay for illegal activities, meaning that other groups accept that they have value.
What really matters is that the South Korean government has recognised that it can be used by legitimate civilians rather than just criminals by selling to what they hope
are legitimate civilians.