Woofun AI reports that the Korea Economic Association (KEA) has formally urged the South Korean government to enact a comprehensive basic act on digital assets to facilitate the expansion of Security Token Offerings (STOs). This strategic recommendation was presented during a joint meeting chaired by Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-cheol, highlighting the critical need for legislative action before existing regulatory windows close.

Structurally, the current legislative roadmap faces significant gaps despite scheduled amendments to the Electronic Securities Act and the Capital Markets Act taking effect in January 2027. The KEA warned that discussions regarding payment and settlement methods remain insufficient, arguing that without a foundational legal framework for digital assets, the effectiveness of these sector-specific amendments could be severely undermined.

Per Woofun AI, major economies including the United States, Japan, and Germany have already adopted stablecoins optimized for STOs as key settlement instruments. In stark contrast, South Korea’s legislative plans for stablecoins and broader digital asset payments have been postponed indefinitely, creating a distinct competitive disadvantage for its capital markets and blockchain industry relative to these established jurisdictions.

A basic digital asset act would provide essential legal clarity for token issuers, exchanges, and investors, thereby reducing the regulatory uncertainty that currently hampers STO adoption. Without such a framework, South Korean firms may struggle to compete globally in the emerging security token market, potentially losing business to jurisdictions with clearer rules. This marks a critical juncture for the financial sector, where parallel progress on payment legislation is now deemed urgent to ensure ecosystem viability.