The new South Korean government accelerates the legalization of STOs, and the consensus between the ruling and opposition parties may end the ban on blockchain token issuance.

According to reports, the South Korean National Assembly is accelerating the review process of the Securities Token Issuance Act. Two STO-related bills introduced by lawmakers Min Byeong-deok and Kim Jae-seop have entered the discussion stage in the Governing Council, and the newly elected Democratic President Lee Jae-myung has unequivocally supported the legalization of the STO, which could break the legislative deadlock since last December. According to the report, South Korea's major securities companies and technology companies have been preparing a large number of STO issuance plans for many years, covering real estate, commodities and intellectual property. Although former President Yoon Suk-yeol has repeatedly promised to push for the legalization of the STO, it is rare for the ruling and opposition parties to reach a consensus, and the financial market expects the new government to complete the legislative process as soon as possible. If passed, the bill will repeal the ban on blockchain token issuance that was implemented in the late 2010s and establish a compliance framework for institutional issuance of asset-backed tokens.