6-6-2025 – South Korea’s National Assembly stands on the cusp of a transformative leap in financial innovation, with two proposed bills poised to legalise tokenized securities, a move that could unshackle domestic firms eager to issue blockchain-based coins linked to assets like real estate, raw materials, livestock, and copyrighted works. According to Yonhap News, these legislative drafts, crafted by lawmakers Min Byeong-deok and Kim Jae-seop, await deliberation in the Political Affairs Committee, igniting hope among industry leaders that a long-standing ban on public blockchain token issuances, imposed in the late 2010s, may soon be overturned.
President Lee Jae-myung’s pro-crypto stance drives STO push
The appetite for security token offerings (STOs) has surged under the newly inaugurated President Lee Jae-myung of the Democratic Party (DP), whose administration commands a formidable parliamentary majority. The DP has consistently championed STO legalisation, viewing it as a catalyst for financial inclusion by enabling micro-investments—potentially as low as 10,000 won ($7.39)—in high-value assets like property or fine art. This vision aligns with a broader bipartisan consensus, rare in its unity, as both ruling and opposition parties, including the People Power Party, rally to invigorate the STO market.
South Korean companies, from financial giants to telecom and tech titans, have long prepared for this moment, with many holding tokenized securities offerings in reserve, awaiting legislative greenlight. The industry’s optimism is palpable, fuelled by expectations that the National Assembly, now emerging from a year-long deadlock triggered by former President Yoon Seok-yeol’s failed martial law bid, will prioritise these bills. Yoon’s unfulfilled pledges to authorise STOs had left firms cautious, but President Lee’s ascent has rekindled confidence in swift regulatory progress.
Political challenges may delay STO implementation
Yet, political turbulence lingers. The DP’s push for special prosecution laws targeting an inquiry into Yoon’s wife, Kim Keon-hee, accused of fraud, stock market manipulation, tax evasion, and corruption, has sparked protests from the opposition, delaying a plenary session schedule. Despite these disruptions, the prospect of STO legalisation, coupled with President Lee’s pre-election promise of a won-pegged stablecoin to bolster South Korea’s global standing in digital finance, signals a bold new era for the nation’s blockchain ambitions.
