South Korea Establishes Framework for Security Token Offerings

According to PANews, South Korea's National Assembly has passed amendments to the Capital Markets Act and the Electronic Securities Act, marking the formal establishment of a framework for the issuance and circulation of security token offerings (STOs). This development comes approximately three years after the country's financial regulatory authorities released relevant guidelines. The core elements of the amendments include the introduction of the distributed ledger concept, allowing issuers meeting certain conditions to directly issue and manage tokenized securities through electronic registration. Additionally, a new 'issuance account management institution' has been established. Investment contract securities and other atypical securities will also fall under the regulatory scope of the Capital Markets Act, with new provisions enabling their circulation in the over-the-counter market through newly established brokerage services. The revised Capital Markets Act takes effect immediately upon publication. However, provisions related to investment solicitation guidelines will be implemented six months after publication, while those concerning over-the-counter trading will come into effect one year after publication.