Min Byung-deok: “Security tokens will drive capital inflows into the Korean market”

“Security tokens are critical infrastructure linking the traditional financial market and the digital-asset market. This is not merely about tokenizing assets; it can also have the effect of drawing global capital into the Korean market.”

Rep. Min Byung-deok of the Democratic Party of Korea made the remarks at the seminar “Structural Changes in the Capital Market and Institutional Challenges After the Legalization of Security Tokens,” held on the 26th at the National Assembly building in Seoul. The seminar was co-hosted by Rep. Min and the Korea Blockchain Industry Promotion Association (KBIPA).

Rep. Min argued that security tokens are a key tool capable of reshaping Korea’s entrenched capital-market structure. He said, “Security tokens can break down the boundary between real assets and financial assets and dramatically improve access to investment,” adding that “assets such as real estate, which have been difficult to securitize, will also offer new investment opportunities through digitization.”

He also explained that security tokens could draw inflows of overseas capital. He said, “If an environment is created in which global investors can more easily access domestic assets, positive capital inflow effects will emerge across Korea’s capital market,” adding that “this could serve as a catalyst to increase the market’s depth and efficiency.”

However, Rep. Min noted, “As security tokens are still in the early stages, there is a need to firmly put the system in order before full-scale trading begins,” and added, “For security tokens to take root, the market must grow in a sound manner.” He stressed the need for mechanisms to secure market trust, including investor protection and anti-money laundering (AML) measures.

Regarding the recent controversy that arose during the licensing process for security-token over-the-counter exchanges, he expressed regret. Rep. Min said, “There was confusion as fairness concerns were raised over the licensing,” adding, “I hope new entrepreneurs will be able to emerge in this newly starting field.”