Law firm Barun held a seminar to review the industry landscape and practical applications after the institutionalization of security token offerings (STOs).
Barun said on the 21st that it held a seminar on the 20th at the Textile Center Building in Samseong-dong, Gangnam-gu, Seoul, under the theme "Security token offerings (STOs) brought within the legal framework: their status and applications." The event was organized to examine regulatory changes and practical issues that corporations may encounter in the commercialization process after amendments to the Financial Investment Services and Capital Markets Act and the Electronic Securities Act passed the National Assembly's plenary session in Jan.
Attorney Lee Hye-jun, who delivered the first presentation, explained the significance of institutionalizing security token offerings (STOs), focusing on the amendments to the Financial Investment Services and Capital Markets Act and the Electronic Securities Act. Lee said that distributed-ledger-based security token offerings (STOs) previously faced constraints in issuance and circulation due to unclear legal grounds, but the latest amendments established a basis for issuance and circulation within the institutional framework.
Lee also said corporations must meet certain requirements to issue and manage security token offerings (STOs) on their own. Lee noted that not only issuer account management institutions under the Electronic Securities Act but also electronic registration institutions and account management institutions need to design their business structures to align with forthcoming enforcement decrees, supervisory regulations, and guidelines. Lee added that, as the Financial Investment Services and Capital Markets Act applies to the circulation of investment contract securities under the amended law, compliance with disclosure obligations and the establishment of investor protection systems are also key review items.
It was also noted that sub-regulations and infrastructure maintenance will continue until the enforcement date of Feb. 4, 2027. Lee viewed the design of distributed ledgers suitable for issuing and circulating security token offerings (STOs) and the scope of applying standards for protecting personal credit information as follow-up agenda items.
Kim Gyeong-eop, CEO of OpenAsset, gave a presentation on payment infrastructure to vitalize the circulation of security token offerings (STOs). Kim said the introduction of a won-based stablecoin is necessary to improve transaction efficiency.
Kim Wan-seong, a department head at Koscom, explained the process of converting the existing over-the-counter system to on-chain infrastructure. Kim also introduced the prerequisites and overall structure of a fractional investment distribution platform and the order, execution, and settlement processes. Kim said the digital asset market can take shape in earnest when assets combining beneficiary certificates and security token offerings (STOs) are managed transparently within institutional infrastructure, and shared Koscom's integrated platform in preparation and its support direction for corporations.
In the final session, Attorney Choi Jin-hyeok covered business use cases of security token offerings (STOs). Choi said demand is growing not only for issuing security token offerings (STOs) backed by real-world assets such as real estate, artworks, and ships, but also by intangible assets such as intellectual property (IP). Choi added that corporations should prepare step-by-step legal risk management and structural design strategies in line with the enforcement of the amended laws. Choi also emphasized that the obligation to file securities registration statements and investor protection regulations under the Financial Investment Services and Capital Markets Act apply as is to security token offerings (STOs).
Lee Dong-hun, managing partner at Barun, said, "Barun will provide practical legal advice to help corporations respond to regulatory changes in the security token offerings (STOs) market," and added, "We will support linking the rapidly changing regulatory environment to business opportunities."