'Digital Financial Ecosystem and Token Securities Convergence' Forum Lee Jae-myung Emphasizes 'Token Legislation' "Resolving the 'Korea Discount'" Concerns About 'Token Exodus from Korea' Also Raised The government and political circles have emphasized the need for legislation on Security Token Offerings (STO). There are also concerns that Korea has little time left in the 'golden time' to secure a position in the rapidly growing global token market. Lee Jae-myung, leader of the Democratic Party, stated through a congratulatory speech at the 'Digital Financial Ecosystem and Token Securities Convergence' forum held at the Korea Exchange in Seoul on the 28th, "The country that secures digital finance will have the initiative in future finance," adding that "activating digital finance centered on token securities can expand our economy's global territory." As Lee was absent from the forum, his speech was read by Lee Han-ju, head of the Democratic Research Institute. In his speech, Lee emphasized the importance of revitalizing the capital market. He said, "If we change the economic structure to make the capital market more attractive than the real estate market, we can resolve the 'Korea Discount'," explaining that "the modernization and activation of the stock market is the way for citizens to become wealthy more easily." He added, "We also need to activate digital finance centered on token securities," and that "by opening the digital asset market and allowing global digital assets to enter and be traded in Korea, we can have opportunities for the globalization of our capital market and wealth accumulation." He also mentioned the need for cooperation between the private sector, government, and political circles. Lee stated, "If the political circles, government, and private sector cooperate to consistently pursue a digital finance strategy, we can overcome the Korea Discount and create an opportunity for Korea's innovative economy to flourish in the long term." He added, "The systematic and transparent construction of the digital finance industry is one of the important tasks we must pursue," and that "we should not neglect efforts to find ways to strengthen the fundamental competitiveness of our economy in each field." Lee Eon-ju and Ahn Do-geol Also 'Support' Other Democratic Party members also supported Lee's statements. Lee Eon-ju, a Democratic Party member, attended the forum and said, "Recently, Korea has been lagging in the digital finance field," and promised to "work for the legislation of token securities." She added, "In the era of digital transformation, we need to accelerate new fields such as knowledge-based service industries," and that "as there is a high possibility of an early presidential election, I will ensure that content related to these fields is included (in the pledges)." Ahn Do-geol, another Democratic Party member, also said at the forum, "Digital finance, including token assets, is one of the promising fields (in the financial industry)," and that "it can be a new path for Korea's financial industry." Ahn added, "If we raise the proportion of the financial industry in the Gross Domestic Product (GDP) from the current 5% to 10%, I believe we can increase the potential growth rate by 1-2% points," and that "we need to foster advanced financial services to create new growth engines." The financial authorities have stated that they will speed up the adjustment of related systems once legislation is completed. Kim So-young, vice chairman of the Financial Services Commission, said the day before (27th) that "we are reviewing the institutionalization of token securities and fractional investment platforms, as well as the second phase of the virtual asset law." Lee Yong-jun, an official from the Capital Market Division of the Financial Services Commission, attended the forum and said, "(Token securities) require legislation," and that "the Financial Services Commission is also working for the prompt passage of the law." Growing at an Annual Average of 39% Voices are growing that Korea also needs urgent institutionalization as the global token market is rapidly expanding. According to the Boston Consulting Group (BCG), the global token market is expected to grow at an annual average of 39% from $1.5 trillion (about 2,190 trillion won) in 2024 to $16.1 trillion (about 23,500 trillion won) in 2030. Kim Dae-ik, a partner at PWC Consulting, pointed out at the forum, "Overseas countries such as the United States, Singapore, and Malaysia are working to secure market leadership by organizing token securities systems and testing new forms of assets," but "as the market is not opening in Korea, there are increasing cases where excellent token assets discovered in Korea are being issued overseas." Concerns were also raised that Korea might miss the opportunity to leap forward as a digital finance hub. Kim Gab-rae, a senior researcher at the Capital Market Research Institute, said at the forum, "Amendments to the Capital Market Act and the Electronic Securities Act have been proposed to the National Assembly for the organization of the token securities system, but the legislative discussion is slow," and that "(now is) the last remaining golden time." He suggested, "It is necessary to create a regulatory framework for Real World Assets (RWA) through the prompt legislation of the token securities package bill," and that "we should recognize that a high level of regulation for investor protection can enhance market reliability, which can increase innovation and profitability."
February 28PiCK
