Recently, with the official approval of corporate investment in virtual assets, Token Securities (STO) is gaining attention as the next focus. STO refers to a method of issuing and trading securities in the form of digital tokens utilizing blockchain technology. It is based on real assets, and because legal ownership and value are guaranteed, it represents a key point where traditional financial markets and blockchain technology converge. This is one of the essential parts for the growth of the virtual asset industry.
According to the National Assembly on the 21st, the STO-related bills were not discussed during the previous day's subcommittee meeting of the Legislative and Judiciary Committee (subcommittee). After finishing the review in the subcommittee, the bills will go to the full committee meeting and then to the Legislative and Judiciary Committee for a vote in the plenary session next month. Therefore, it is expected that the STO-related bills that were not discussed in the subcommittee the day before will be difficult to process in this 422nd extraordinary session of the National Assembly.
As news spread that discussions on STO in the National Assembly had come to a halt, disappointment spread throughout the industry. The stock prices of related companies saw significant declines across the board. As of 9:40 a.m. that day, Galaxia SM was trading at 260 won, down 7.21% from the previous day. GalaxiaMoneytree also plunged 9.77%, while Wemade (-6.47%) and Wemade Max (-5.43%) were also down.
However, as reported by the media and the industry, it is not true that the STO-related bills did not pass the National Assembly or that discussions fell through. From the outset, the STO agenda items were not on the discussion list of this Legislative and Judiciary Committee. The previous day's subcommittee meeting was a venue for discussing various items that had been on the agenda for some time. Review items that were discussed that day included amendments to the 서민금융법 and adjustments to medical school quotas, among other long-standing agenda items.
According to the National Assembly, it was inherently difficult for items that were just introduced this month, like the STO-related bills, to go directly to the subcommittee. Of course, discussion items for the subcommittee are determined through negotiations between the party whips, making it not inherently impossible for the whips to bring up the STO bills in this session. However, it seems excessive to consider the STO agenda items, which would serve as the legal basis for issuing digital tokens, as urgent matters that need immediate attention.
However, the industry, which has been waiting for the legislation of STO, is reported to be significantly disappointed. The legislation of STO has been pursued since 2023, but has repeatedly been pushed down the priority list. Previously, it was introduced in the 21st National Assembly but was not placed on the agenda and was automatically discarded with the end of the National Assembly's term. This is why there are reactions in the industry questioning whether it will be discarded again as no discussions took place in this subcommittee.
Fortunately, a positive atmosphere surrounding the STO bills is being conveyed within the National Assembly. There are almost no differences of opinion between the ruling and opposition parties, and similar bills have been introduced by National Power Party member Kim Jae-seop and Democratic Party member Min Byung-deok. In particular, with the rapid development of the global virtual asset market, there are constant calls for related discussions in the political arena. A National Assembly official noted, "The National Assembly is also gathering opinions regarding the blockchain industry, and related seminars have been held several times," adding, "The next subcommittee meeting is expected to address the STO agenda."