Lee Yong-jun, an official from South Korea's Financial Services Commission Capital Markets Division, stated on May 8 that designing infrastructure for standardized securities tokenization requires cooperation between the private sector and Korea Securities Depository. Speaking at the 'Fan-Centered K-Culture Content STO Activation Policy Seminar' held at the National Assembly Members' Hall in Yeouido-dong, Yeongdeungpo-gu, Seoul, Lee noted that discussions with industry stakeholders revealed the need for both private sector efforts and cooperation from the depository. The FSC announced in May through the Token Securities Council a phased roadmap for standardized securities tokenization aligned with global trends, without restrictions in enforcement decrees or supervisory regulations.
FSC Announced Phased Roadmap for Standardized Securities Tokenization in May
Lee explained that the FSC announced through the second Token Securities Council in May a plan to proceed with standardized securities tokenization in stages aligned with global trends. The announcement stated that the tokenization would proceed without restrictions in enforcement decrees or supervisory regulations, with a phased roadmap for issuance.
Lee Yong-jun Outlined Infrastructure Collaboration Requirements
Lee stated that discussions with various industry sectors revealed that designing the foundational infrastructure requires significant private sector efforts and cooperation from Korea Securities Depository. He noted that the FSC is discussing these matters through the council to proceed in an orderly manner while supporting innovation.
FSC Official Explained Existing Overseas Issuance Exemptions
Regarding Regulation S, Lee clarified that while South Korea does not have an identical regulation, the country has detailed regulations for offshore issuances under public offering rules. He explained that these exemptions apply when securities issued overseas do not flow back to Korea, similar to Regulation S cases. Lee noted that these frameworks already apply to Korean companies issuing bonds or global funds overseas, regardless of whether they are token securities.
Lee Emphasized Importance of Accumulated Token Securities Cases
Lee stated that the accumulation of cases such as K-culture token securities is valuable. He noted that IP-based revenue securities under domestic law have progressed to this stage because companies like MusicCow demonstrated proof of concept through pilot programs. Lee added that for concert-based products, issuers will determine through legal review whether to structure them as profit-participating bonds or investment contract securities, while financial authorities will align with these decisions considering investor protection. He emphasized that accumulated cases of concert-based products proceeding without investor harm are important, as they provide good examples for the Financial Supervisory Service to review securities registration statements and check investor protection information.
FAQ
What did Lee Yong-jun state on May 8 about standardized securities tokenization?
Lee Yong-jun, an FSC Capital Markets Division official, stated on May 8 that designing infrastructure for standardized securities tokenization requires cooperation between the private sector and Korea Securities Depository. He made these remarks at a policy seminar held at the National Assembly Members' Hall in Seoul.
Why does the FSC require collaboration for tokenization infrastructure?
According to Lee, discussions with industry stakeholders revealed that establishing the foundational infrastructure for standardized securities tokenization requires significant private sector efforts and cooperation from Korea Securities Depository. The FSC is addressing these requirements through the Token Securities Council to proceed in an orderly manner while supporting innovation.
What did the FSC announce in May regarding standardized securities tokenization?
The FSC announced through the Token Securities Council in May a phased roadmap for standardized securities tokenization aligned with global trends. The announcement stated that tokenization would proceed without restrictions in enforcement decrees or supervisory regulations.
