□ The current status of security tokens

​ A security token (or tokenized security) is a digitized representation of a security subject to the Financial Investment Services and Capital Markets Act that uses distributed ledger technology. One of its key advantages is its ability to provide fractional ownership of a large asset.

​ Security tokens can be offered for various assets, including artwork, Korean beef, ship financing, and real estate, which were previously ineligible for securitization. In this context, tokenized securities have emerged as promising financial products whose market is projected to grow rapidly in importance and popularity.

​With advanced countries leading the way in legalizing security tokens, Korea is setting the legal framework for security token offerings, and domestic financial institutions are developing relevant technologies.

□ Prospects of real estate tokenization

​ Developed countries are spearheading the tokenization of wide-ranging assets. Among these assets, real estate is currently in the spotlight and will likely dominate the tokenized market. 

​Not only commercial buildings and rental houses but also tourist facilities, such as hotels, are being tokenized. A typical example is the St. Regis Aspen Resort in the US. 

​ On the domestic level, fractional shares in commercial real estate are marketed through innovative financial services featuring a structure similar to security tokens. Unlike tokenized securities, this investment instrument is not a cryptocurrency. 

□ Possibility of tokenizing Saemangeum development

​ Three types of tangible assets in Saemangeum can be tokenized by modifying the existing indirect investment vehicle for each real estate asset. 

​ To secure a security token issuer, Saemangeum must be certified as an innovative financial service region, and the creation of a security token exchange platform is

contingent on Saemangeum development being completed.

□ Plans to introduce security tokens and expected effects

​ To successfully incorporate tokenized securities into Saemangeum development, it is of utmost importance to build a conducive investment climate (for satisfactory returns on investment) through the designation of the “Saemangeum Digital Assetization Special Zone.” Thus, Saemangeum Development Corporation must play an integral role in offering security tokens as a principal agent, while Jeonbuk Self-Governing Province is advised to proactively attract major investors such as the National Pension Service.

For tokenized securities to be traded on the exchange platform, the Saemangeum Digital Real Estate Tokenized Security Price Index (tentatively S-DRESTPI) must be developed to allow investors to track the performance of securities.

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