Korean media reports that the legalization of token securities was specified in the presidential election pledges… Could this lead to clarification of regulations?

As early voting for the presidential election has begun, revitalizing the digital asset market has emerged as a major economic pledge for both parties. In particular, both the ruling and opposition parties have made clear their intention to legislate STOs (token securities issuance),
Attention is focused on whether the STO market, which has been dwindling due to a lack of regulation, will reach a turning point where it can be fully institutionalized.
The official presidential election pledges have been released. In the pledges, the Democratic Party of Korea stated that it will "make Korea a digital asset hub" and create various business opportunities through the legalization of STOs.
Looking at the manifesto, the Democratic Party of Korea first stated that it would push for the swift enactment of token securities legislation. A prime example would be the STO Act proposed by Min Byeong-duk, a member of the Democratic Party of Korea, last year.
In November of the same year, the Democratic Party of Korea proposed amendments to the Capital Markets Act and the Electronic Securities Act. These bills include provisions on the definition of token securities and procedures for distribution.
If Lee Jae-myung is elected, he is expected to quickly process the bill to institutionalize STOs. The Democratic Party of Korea plans to create various business opportunities through the legalization of STOs.
If the STO market is in fact activated, new business opportunities will expand across all related infrastructure, including token securities issuance platforms, secondary markets, custody, and asset valuation.
In particular, financial institutions and fintech companies will cooperate to create a variety of financial models, such as private placement funds based on STOs, pension fund products, and alternative investments targeting private banks.
The Democratic Party of Korea has pledged to allow the trading of institutional rights for assets that were not traded as existing securities, such as government bonds, artworks, and patents, and to institutionalize an off-exchange distribution platform.
The company has cited strengthening investor protection, such as improving liquidity through the STO system, fair valuation and accounting audits, and establishing a system to confirm rights.
It is designed to increase investor confidence. If real assets that were previously outside the securities market can now be traded within the framework of the system, the scope of asset liquidation will expand and financial innovation will increase.
In particular, when assets with public or technological value, such as government bonds or patents, are securitized, it is drawing attention as it may open up new portfolio avenues for individual investors.
In addition, if an off-exchange distribution platform is incorporated into the system, it is expected that the transparency of transactions will increase, which will have a positive impact on ensuring liquidity in the secondary market.
If the infrastructure for valuation, accounting audits, and confirmation of rights structures is provided under the system, the issue of investor protection, which has been pointed out as the biggest risk factor in the STO market, will be resolved to some extent.
It is expected that the People's Power Party also explicitly stated in its presidential election pledges that it will "open the era of market development for digital assets" and to legislate token securities. However, specific implementation and regulations have yet to be determined.
There is no mention of the design, and only the simple phrase “legislation of token securities” is included, which has been criticized as being relatively lacking in specificity.
Instead, the People's Power is focused on developing a system that covers all crypto assets.
The group has pledged to establish a disciplinary system for cryptocurrencies and enact a virtual currency law, placing emphasis on expanding digital assets as a whole, not just STOs, and building an institutional foundation for them.
The industry is showing expectations that both the ruling and opposition parties have pledged to legalize token securities. An STO industry insider said, "Both the ruling and opposition parties have pledged to legalize STOs.
"The biggest progress is that there is now consensus on the need to improve the system," he said, adding, "This will be an opportunity to bring trust and clarity to a market that has been shriveled due to a lack of systems in place."
It will be," he said.