The South Korean STO bill has passed the initial review in Congress, and the token securities circulation market may emerge in the first half of next year

The South Korean electronic securities law and capital markets law amendment, which promotes the institutionalization of Security Token Offerings (STO), has passed the bill review subcommittee of the National Assembly's Administrative Committee, laying the groundwork for the opening of the STO circulation market in the first half of next year.

The amendment aims to officially incorporate blockchain distributed ledger technology into the electronic registration system, allowing issuers to register and manage token securities based on distributed ledgers as electronic securities; at the same time, it will bring small-scale over-the-counter trading platforms, such as investment contract securities and non-monetary trust income securities, under regulation, providing a basis for the legitimate operation of fragmented investment exchanges. If the bill is finally passed in the National Assembly's plenary session next month, the tokenization and circulation of various physical assets such as real estate, artworks, and music copyrights will be able to proceed within a regulatory framework.