The South Korean parliament is preparing to pass a bill allowing the official issuance of tokenized securities, enabling companies to mint digital assets backed by real estate, commodities, artworks, and even livestock. Previously, STOs were strictly banned—earlier reform attempts failed.
Parliament members Min Byung‑dok and Kim Jae‑seop introduced the proposals late last year, but a stagnant legislature and former President Yoon Suk‑yeol’s administration stalled progress. With the backing of President Lee Jae‑myung and the ruling Democratic Party, deliberations have accelerated, and experts expect passage in the coming weeks.
This move could be transformative: major Korean financial and tech firms are preparing STOs across asset classes, potentially launching years ahead of other markets. But next comes a critical stage: the bill must pass through the policy committee and obtain final parliamentary approval. After that, regulatory infrastructure will follow—FSC oversight, KYC procedures, and disclosure requirements modeled on Singapore, Japan, and EU standards.
For the industry, it’s a “Made in Seoul” signal: Korea is shifting from caution toward active integration of blockchain into real-world business. Platforms issuing tokenized real estate, IP rights, or commodities can become legal issuers and enter international markets.
This is not just technical regulation—it modernizes the entire financial ecosystem: from banks to IT, from investors to startups. Once enacted, the bill will unlock a previously dormant tokenized asset market and position Korea to compete with STO leaders in the U.S., EU, and Asia.
