South Korea Advances Legislation on Security Token Offerings

According to PANews, the South Korean National Assembly is accelerating the review process for the Security Token Offering (STO) legislation. Two STO-related bills, submitted by lawmakers Min Byeong-deok and Kim Jae-seop, have reached the discussion stage in the Government Affairs Committee. Newly elected Democratic President Lee Jae-myung has expressed clear support for the legalization of STOs, potentially breaking the legislative deadlock that has persisted since December last year. The report highlights that major South Korean securities firms and tech companies have been preparing numerous STO issuance plans over the years, covering sectors such as real estate, commodities, and intellectual property. Despite former President Yoon Suk-yeol's repeated promises to legalize STOs, these efforts were unsuccessful. However, there is now a rare consensus among political parties, and the financial markets are hopeful that the new administration will swiftly complete the legislative process. If the bill is passed, it will repeal the ban on blockchain token issuance implemented in the late 2010s, establishing a compliant framework for institutions to issue asset-backed tokens.