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Korea to Lay Foundation for Token Securities Issuance and Distribution

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On March 6, Lee, head of the Capital Market Department of the Korea Financial Commission (KFC), announced that amendments to the Electronic Securities Law and …

Korea to Lay Foundation for Token Securities Issuance and Distribution

On March 6, Lee, head of the Capital Market Department of the Korea Financial Commission (KFC), announced that amendments to the Electronic Securities Law and the Capital Market Law would be submitted in the first half of this year to lay the foundation for the issuance and distribution of token securities (ST0) in the first half of this year. Lee predicted that according to the legislative discussion of the National Assembly, the Token Securities (ST0) system could be implemented as early as the end of 2024. It is reported that the amendments to the Electronic Securities Law include the recognition of distributed ledger technology as one of the ways to digitize securities and the establishment of a new issuer account management institution. The amendments to the Capital Market Law include the establishment of over-the-counter brokerage business and the issuance of non-typical securities, such as investment contract securities and non-monetary trust beneficiary certificates.

The amendments to the relevant laws of ST0 in South Korea will be submitted in the first half of this year, and will be implemented at the earliest by the end of 2024

Interpretation of the news:


The Korea Financial Commission (KFC) has made an announcement that it will be submitting amendments to the Electronic Securities Law and the Capital Market Law in the first half of this year. The purpose of these amendments will be to establish a foundation for the issuance and distribution of token securities (ST0) in Korea, with expected implementation by the end of 2024. Lee, the head of the Capital Market Department of the KFC, predicts that the legislative discussion of the National Assembly will be in favor of the Token Securities (ST0) system to be implemented as quickly as possible.

The proposed amendments include the recognition of distributed ledger technology in the digitization of securities, which will play a crucial role in the issuance and distribution of token securities. It is a significant move towards the adoption of blockchain technology in the Korean securities market, hoping to provide more efficient registration and settlement processes for token securities. Additionally, a new issuer account management institution will be established to better regulate security tokens.

The amendments to the Capital Market Law also include the establishment of over-the-counter brokerage business, which will create more opportunities for people and businesses to invest in security tokens. Furthermore, this also includes the issuance of non-typical securities, such as investment contract securities and non-monetary trust beneficiary certificates that were not previously considered under the law. It is a positive development that will lead to increased investment opportunities and growth in the Korean securities market.

The introduction of token securities in the Korean market will open up new investment opportunities and provide more efficiency through the use of blockchain technology. It represents a step forward in the adoption of blockchain in the Korean financial system and could potentially lead to a more robust and diversified market. With the amendments to the Electronic Securities Law and the Capital Market Law, Korea is well on its way to becoming a leader in innovative and dynamic financial markets.

In conclusion, this announcement means that the Korean securities market is moving forward in advancing the use of blockchain technology to support the issuance and distribution of token securities. This is a positive development that can provide a more robust and efficient market for investors in Korea and beyond.

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