South Korea Poised for an Astonishing $287 Billion Surge in Security Tokens Market by 2030

South Korea’s security token market is about to explode, with forecasts saying it’ll hit $287 billion by 2030. In addition to highlighting the country’s progressive approach to security tokens, it illustrates the immense potential for transformative financial opportunities. 

Within the next decade, South Korea will be a major powerhouse in the global security tokens arena as regulatory frameworks solidify and investor confidence grows.

South Korea’s Vision for $287B Market by 2030 Captivates Banks

In 2030, the South Korean financial industry believes the security token offerings (STOs) market will be worth $287 billion. Commercial banks in the country are showing interest and actively considering joining this market. 

Over the next decade, the domestic security token market will grow to $27 billion, according to Hana Financial Group’s Management Research Institute. Recent government announcements aim to relax regulations surrounding STOs after the ban on domestic coin issuance in early 2018.

Licensed financial companies can offer STOs (Security Token Offerings) more freely.

Insiders expect “the pace of domestic financial companies’ entry into the market” to “accelerate quickly.”

Seoul plans on testing STOs by creating a regulatory sandbox. The Financial Services Commission (FSC) will supervise selected companies issuing and distributing tokenized securities in this sandbox. 

A group of banks has formed an STO alliance while they wait for clearer approval. Originally founded by Nonghyup Bank, Suhyup Bank, and Jeonbuk Bank, the alliance expanded on June 15 when the Industrial Bank of Korea, Shinhan Bank, and Woori Bank joined.

With tokenized assets, banks are expecting a boom in STOs “real estate, artwork, and music copyright” projects on the way.

Is South Korea’s STO market opening up for banks anytime soon?

The FSC sandbox program already includes a music copyright company that uses tokenization. Banks might have to wait until 2025 or later to get into STOs. The extended timeline is due to delays in implementing necessary legislation.

An unnamed regulator said that “submission of the relevant legal amendment” was already “delayed a little,” so legalization could come “at the end of next year at the earliest.”

STO trading platforms were reportedly being developed by Shinhan and Kookmin earlier this year. Blockchain-based platforms are expected to launch in early 2021. 

Investing in STOs will be easier and more accessible, thanks to the two banks. Additionally, they plan to use the platform to issue digital securities.