The Financial Investment Association said it welcomed the political affairs committee of the National Assembly passing amendments to the Capital Markets Act and the Electronic Securities Act, known as the Security Token Offering bill, which establish a legal basis for issuing and trading security tokens.

It said the amendments are significant because lawmakers from both parties recognised the need to legislate STOs, introduced related bills and passed them in the committee’s plenary session by bipartisan agreement.

It said advances in blockchain technology have enabled so‑called fractional investment by tokenising underlying assets such as real estate, music rights and artworks, driving steady demand for issuing and trading non‑standard securities.

It said security tokens had drifted without systemisation because strict issuance and trading rules left no legal mechanism to accommodate them. The amendments recognise electronic registration of security tokens and provide regulatory grounds for STO introduction and trading.

The industry sees STO systemisation diversifying corporate fundraising. It said efficient use of STOs, which allow companies to securitise a wide range of assets, can enable fast, low‑cost issuance and serve as a useful fundraising tool for innovative and venture firms.

Financial Investment Association Chairman Seo You‑seok said, “We greatly welcome the establishment of a legal basis for STO systemisation,” adding that STOs will act as a catalyst for expanding productive finance and diversifying fundraising for innovative companies.

He said the industry must work to build trust in the STO market now that the first step has been taken through bipartisan agreement. He added that it will actively cooperate with financial authorities in refining details and preparing for swift implementation.