Security token offerings (STOs), set to take effect under legislation next February, will reshape the paradigm of Korea's capital market, according to analysis presented at an industry event. This is because STOs can expand beyond fractional investment in non-standardized securities such as real estate, artworks, and copyrights into the areas of stocks, bonds, and funds.
Kim Kwan-sik, head of the digital innovation division at Korea Investment & Securities, made the remarks at "Bitcoin Seoul 2026," held Friday at the FKI Tower in Yeouido, Seoul, hosted by Seoul Economic Daily and Decenter. "An era is opening in which you can invest 100,000 won worth of equity in a 50 billion won building in Apgujeong," he said. He stressed, "STOs have the potential to drive a new business paradigm in the capital market, beyond the concept of being a new investment product."
Kim said that if competition among brokerages to capture the STO market begins in earnest, the industry landscape is highly likely to be significantly reorganized. "The domestic STO market is expected to grow from 34 trillion won in 2024 to 367 trillion won in 2030," he said, explaining that "finance-related fields are projected to account for about 70 percent of the domestic STO market."
Mirae Asset Securities is also paying attention to the growth potential of the STO market based on stocks, bonds, and MMFs. Lee Yong-jae, head of the digital asset business division at Mirae Asset Securities, said, "Many domestic brokerages and asset management firms are very interested in STOs that utilize standardized securities." He added, "As innovation is occurring in the market led by suppliers, if results emerge, the influence will expand into the realm of investors."
Shin Hee-jin, managing director overseeing new business at Kyobo Securities, said, "Korea possesses the optimal financial environment and potential for the real-world asset (RWA) market to grow faster than in the United States and Europe." He said, "We need to reach a level where we can conduct lending, margin trading, and repurchase agreement (RP) transactions using tokenized assets as collateral." He added, "If we move beyond simply holding RWAs to the utilization stage and secure central bank digital currency (CBDC) and stablecoin infrastructure, I expect we will be able to enter the global market as well."
