The South Korean Financial Services Commission is promoting legislation for Security Token Offerings (STO), and significant growth is expected in the digital asset market

ChainCatcher news, the Financial Services Commission of South Korea has announced that it will promote the legalization of Security Token Offerings (STO) and fractional investment platforms as one of the core economic tasks for this year. STO converts assets such as real estate and artworks into digital tokens through blockchain technology, supporting small investors to participate in high-value asset investments. Financial authorities have begun revising the Capital Markets Act and the Electronic Securities Act, and are preparing the relevant infrastructure for this purpose.

The industry expects that the legislation of STO will significantly boost the growth of South Korea's digital asset market, with the STO market size in South Korea projected to reach 119 trillion won by 2026 and increase to 367 trillion won by 2030, nearly quadrupling.