South Korea Set to Approve Bill Allowing Tokenised Securities Bill

South Korea’s parliament may soon approve a long-awaited bill to legalise tokenised securities, potentially allowing domestic firms to issue blockchain-based tokens backed by real estate, commodities, livestock, and intellectual property.

Two draft bills, introduced by lawmakers Min Byeong-deok and Kim Jae-seop, are currently under review by the National Assembly’s Political Affairs Committee.

Progress had stalled since December, when former President Yoon Seok-yeol’s failed attempt to impose martial law plunged the Assembly into deadlock.

However, with the recent inauguration of President Lee Jae-myung and the Democratic Party (DP) holding a strong parliamentary majority, momentum is building for reform.

Senior DP leaders have consistently advocated for lifting the longstanding ban on public blockchain token issuances—a restriction in place since the late 2010s.

The proposed legislation would pave the way for regulated Security Token Offerings (STOs), reversing a policy widely criticised by both the public and industry stakeholders.

According to Yonhap News, optimism is running high that lawmakers will now “quickly” prioritise STO regulation, especially given that similar proposals nearly passed in previous sessions before being derailed by political gridlock.

The agency added:

“However, the industry thinks that much has since changed.”

Firms Poised to Take Action

For years, dozens of South Korean companies—including major financial institutions, telecom leaders, and top tech firms—have been preparing to launch tokenised securities offerings, waiting on the sidelines for regulatory clarity.

Despite repeated promises from former President Yoon to greenlight STOs, his administration ultimately failed to act.

Now, with President Lee in office, many industry players are cautiously optimistic that meaningful progress is finally within reach.

Lawmakers across party lines appear to have reached a broad consensus on the need to legalise STOs, and the country’s largest securities firms are urging the government to expedite the legislative process.

For many of these companies, STO legalisation represents not just a regulatory milestone but a strategic opportunity to diversify their financial product portfolios and tap into new markets.

Yonhap explained:

“Both the ruling and opposition parties are, unusually, showing a strong desire to activate the STO market. A bipartisan consensus is emerging.”