[Edaily Marketin LEE GEON-EOM JI YEONG-EUI Reporter] With the legal framework for security token offerings (STOs) now finalized, the remaining key issue is no longer the law but the market itself. Min Byung-deok, a member of the Democratic Party of Korea who spearheaded the legislation, stated, “Digital financial innovation is an area where we compete not just among ourselves but with the rest of the world,” adding, “I hope regulatory agencies will engage in discussions with the market from the perspective of public convenience and the future of South Korea, rather than focusing solely on administrative convenience.”

At the “Edaily STO Summit 2026” held on the 1st at the Korea Exchange Conference Hall in Yeouido, Seoul, Rep. Min stated, “We cannot insist on sticking to the same paths used by horse-drawn carriages just because cars have been invented,” adding, “The passage of a law is not the end of the regulatory process but the beginning of the market.” He pointed out, “If regulations for the same risks overlap, or if regulatory agencies block market entry to avoid responsibility, this hinders innovation.” He went on to emphasize, “It is important to strike a balance between lowering the barriers to innovation without lowering the standards of trust.”

Representative Min cited the development of a dedicated soccer stadium in Anyang as a specific example of how STOs could be utilized. The concept involves raising development funds through tokenized securities rather than taxes, thereby avoiding a financial burden on the government while providing investment opportunities to citizens. He said, “If passionate fans among the citizens become investors, they will become supporters willing to tolerate dust, noise, and traffic inconveniences during construction,” adding, “By sharing development profits—which previously went solely to developers—with citizens, citizens become participants who share in the results rather than mere observers of the development project.”

Ko Young-ho, Director of the Capital Markets Division at the Financial Services Commission, who participated in the panel discussion, agreed on the need for innovation while emphasizing the importance of verification and building trust. Director Ko said, “Since tokenized securities are not a new type of security but rather a change in the method of recording rights, it is necessary to verify whether the existing regulatory framework functions properly.” He continued, “The phased expansion—from MMFs and corporate bonds targeting institutions to public offerings for individuals and on-chain payments—is not a sequence of closing doors, but a sequence of building trust.”

Director Ko remarked, “The criteria for allowing cross-ledger transfers and public blockchains hinge on whether new technology can replace the role of the existing regulatory framework,” adding, “If a methodology is proposed that implements the same level of rights confirmation and liability structure, we will review it with an open mind.” He also noted, “If technology development and verification proceed rapidly, the timeline could be accelerated.”

Director Ko explained, “We will communicate the criteria as clearly and transparently as possible, and we will proceed with opening up the market in a phased yet expedited manner following verification,” adding, “Even after the law takes effect, we will continue to communicate with the market to jointly establish the regulatory framework.”