Heo Se-young (허세영), CEO of Lucentblock, called on financial authorities to grant additional licences for over-the-counter brokerage in fractional investment distribution. He said the issue was not to question the qualifications of existing licensees, but to allow more entrants so they can compete in the market. He added the company is also considering legal procedures depending on how authorities respond.

Heo set out his position at a news conference on the 27th on the licensing process for fractional investment distribution platforms and the steps to institutionalise financial regulatory sandbox operators.

He raised concerns about the process in which the Financial Services Commission limited the number of licensed over-the-counter brokerage operators for fractional investment to a maximum of two.

He claimed that at a Financial Services Commission meeting in September 2025, the number of licensees was handled as a reported item rather than an agenda item for resolution. He also said documents at the time presented a maximum of two as an example rather than a final conclusion.

He said there is a need to confirm what decision-making procedures took place, since the policy of a maximum of two was later finalised in a press release.

He also compared the case with internet-only banks and real estate trust businesses, saying the process of deciding the number of licences for fractional investment distribution platforms lacked sufficient assessment of competition and analysis of market impact.

He said authorities reviewed competition and market concentration in the cases of internet banks and real estate trust companies. He said that this time they cited preventing investor and liquidity fragmentation from a proliferation of distribution platforms. He argued the basis for limiting the number of licences needs to be disclosed more specifically.

He also raised an issue with the process of institutionalising regulatory sandbox projects.

Lucentblock has operated a fractional investment platform as an innovative financial service operator, but did not obtain a licence during the formal institutionalisation process. He said under the Special Act on Supporting Financial Innovation, innovative financial businesses that completed testing should be substantively guaranteed a chance to apply for licences and permits to continue operations after institutionalisation.

He also disputed authorities' view that Lucentblock's role during the sandbox phase differed from the scope of work covered by the latest licensing.

He claimed the business plan when it was designated an innovative financial service in 2021 already included distribution functions, such as token trading between investors, settlement and managing transaction records in a separate market. He said the Financial Services Commission's regulatory impact analysis also included content on institutionalising existing fractional investment distribution platforms.

He said the goal was not to have the qualifications of already licensed operators revoked.

He said, "I am not asking that the licences of other entities be revoked over what has already happened. I want to compete fairly and intensely under market principles and be chosen by the market and customers," adding, "I am calling on financial authorities to quickly grant additional licences."

He also left open the possibility of legal action if additional licences are not granted for an extended period.

On legal action, he responded to the effect that, "It is true there are parts under review," but said he would respond by considering authorities' future decisions.

On the company's financial condition after failing to secure a licence and whether there have been investment withdrawals, he said existing investors support the will to continue the business and that so far there have been no major issues related to withdrawals.

He said, "Additional licensing is open, but if they decide after watching market conditions when the two companies have not even started yet, there is no way to know whether that will be 1 year later or 3 years later," adding, "I will not give up and will demand additional licences."