Catenaa, Saturday, June 14, 2025- South Korea’s National Assembly is poised to approve legislation that would legalize tokenized securities, enabling domestic companies to issue blockchain-based tokens tied to assets like real estate, raw materials, livestock, and copyrighted works.
Two bills proposing the formal regulation of security token offerings (STOs) are currently before the National Assembly’s Political Affairs Committee.
The legislation aims to overturn a longstanding ban on public blockchain token issuances dating back to the late 2010s.
The bills, introduced by lawmakers Min Byeong-deok and Kim Jae-seop, have gained momentum following the inauguration of President Lee Jae-myung and the Democratic Party’s parliamentary majority.
Lawmakers from both ruling and opposition parties reportedly agree on the need to activate the STO market to diversify investment options and boost financial inclusion.
Industry players, including major financial institutions, telecom firms, and tech companies, have been awaiting regulatory clarity for years to launch tokenized securities offerings.
The new legal framework could allow investors to make micro-investments as low as 10,000 won ($7.39) in assets traditionally out of reach, such as real estate and fine art.
Despite political tensions in the National Assembly related to investigations into former President Yoon Seok-yeol’s family, legislative efforts to pass the STO bills appear set to move forward once regular sessions resume.
President Lee has also pledged to introduce a won-pegged stablecoin, aiming to secure South Korea’s role in the global stablecoin market.
