PANews reported on June 6 that the South Korean National Assembly is accelerating the review process of the Security Token Offering (STO) bill. Two STO-related bills submitted by lawmakers Min Byeong-deok and Kim Jae-seop have entered the discussion stage at the Government Affairs Committee. Newly elected Democratic Party President Lee Jae-myung has explicitly supported the legalization of STOs, which may break the legislative deadlock that has persisted since last December.
The report noted that major securities companies and technology firms in South Korea have been preparing numerous STO issuance plans over the years, involving areas such as real estate, commodities, and intellectual property. Although former President Yoon Suk-yeol had repeatedly promised to promote the legalization of STOs without success, the current ruling and opposition parties have rarely reached a consensus, and the financial market is hopeful that the new government can complete the legislative process quickly. If the bill is passed, it will abolish the ban on blockchain token issuance implemented in the late 2010s and establish a compliance framework for the institutional issuance of asset-backed tokens.
