The South Korean National Assembly appears set to approve a significant piece of legislation concerning tokenized securities. This new bill would empower domestic companies to issue blockchain-based tokens linked to various asset classes, such as real estate, raw materials, livestock, and intellectual property.
As reported by Yonhap, two key bills aimed at formalizing tokenized securities are currently under review by the Political Affairs Committee of the National Assembly.
Political Landscape Shifting
The legislation was put forward by lawmakers Min Byeong-deok and Kim Jae-seop. The assembly has been mired in a stalemate since last December, following former President Yoon Seok-yeol’s unsuccessful attempt to enforce martial law.
On his first day in office, President Lee Jae-myung announced crucial appointments, including his prime ministerial nominee and presidential aides, during a press conference at the presidential office located in Yongsan-gu, Seoul. https://t.co/lNUF4jvVvw
— The Korea Herald 코리아헤럴드 (@TheKoreaHerald) June 4, 2025
With the inauguration of President Lee Jae-myung from the Democratic Party (DP), an end to the legislative deadlock now appears imminent.
Given that the DP holds a commanding majority in parliament, senior officials from the party have consistently advocated for the legalization of security token offerings (STOs).
The proposed legislation would reverse a longstanding blanket prohibition on public token issuance via blockchain, a ban that has been in effect since late in the 2010s.
According to Yonhap, optimism is growing that legislators will promptly focus on crafting regulations for STOs.
The news agency also noted that previous sessions had generated high expectations for the bills’ approval, with many believing the committee was on the verge of a favorable outcome.
In the last session, both bills were unable to pass, largely due to the National Assembly’s gridlock, as suggested by Yonhap. However, industry insiders believe conditions have shifted significantly since then.
Industry Prepared for Change
A plethora of South Korean enterprises have long been prepared to launch offerings related to tokenized securities, waiting for the legislative environment to shift in their favor. This group includes major financial institutions, telecom leaders, and notable tech corporations.
Former President Yoon had repeatedly committed to facilitating the approval of STOs but ultimately fell short of delivering on those promises.
Domestic firms express hope that the new administration under President Lee will not replicate Yoon’s inaction.
There appears to be a broad consensus among lawmakers on the necessity of legalizing STOs, with the country’s largest securities firms urging expedited action on the legislation.
Many companies argue that legalization would allow them to broaden their financial product portfolios. As Yonhap reported:
“Both ruling and opposition parties are, unusually, demonstrating a strong commitment to energizing the STO market. A bipartisan consensus is quickly forming.”
Lee Jae-myung claims the presidency with an unprecedented vote count https://t.co/jKFe3xPOyT
— The Korea Times (@koreatimescokr) June 4, 2025
Enhancing Financial Access
Lawmakers are optimistic that STOs will enhance financial inclusion, allowing the public to make micro-investments starting as low as 10,000 won (approximately $7.39) in assets like real estate or high-value art.
Nonetheless, while media reports suggest that a vote on the bills proposed by Min and Kim is likely once regular proceedings resume, the ongoing controversy surrounding Yoon continues to impede the assembly’s activities.
The DP aims to expedite a series of special prosecution laws as it seeks to investigate allegations against Yoon’s spouse, Kim Keon-hee, who has faced accusations of fraud, market manipulation, tax evasion, and corruption.
The opposition People Power Party remains vocally opposed to these actions, asserting that a schedule for a plenary session has yet to be established.
President Lee has also committed to introducing a KRW-pegged stablecoin ahead of the June 3 elections, asserting that a stablecoin tied to the won could position South Korea competitively in the global stablecoin landscape.
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