The National Assembly of South Korea has passed two legislative amendments to regulate security tokens

According to market news, the South Korean National Assembly has voted to pass amendments to the Capital Markets Act and the Electronic Securities Act, marking the formal establishment of a framework for the issuance and circulation of security tokens (STOs) in the country, about three years after the financial regulatory authorities released relevant guidelines. The core content of the amendments includes the introduction of the concept of distributed ledger technology, allowing eligible issuers to directly issue and manage tokenized securities through electronic registration, while also establishing a "Issuance Account Management Institution."

In addition, non-typical securities such as investment contract securities will also be included under the regulation of the Capital Markets Act, and their circulation in the over-the-counter market will be permitted through the newly established over-the-counter brokerage business. The amendments to the Capital Markets Act will take effect from the date of publication. However, provisions related to investment solicitation guidelines will take effect six months after publication, while provisions related to over-the-counter trading will take effect one year after publication.