South Korea's Woori Bank and NH NongHyup Bank independently advance their tokenization platforms.
South Korean financial institutions are leading the charge in the adoption of security token issuance, despite a delay in passing legislation to support the practice. Major banks and securities companies, including Woori Bank, Shinhan, KB Kookmin, and KEB Hana, are building token issuance platforms and forming digital asset teams to research and develop crypto services [1][3].
Woori Bank, for instance, has established a Digital Asset Team to explore the realm of cryptocurrencies and is reviving previous crypto projects while planning consortium formations to enter the stablecoin market [1][3]. KB Kookmin Bank, on the other hand, has launched a Digital Asset Response Council, coordinating a system-wide approach to digital assets across its affiliates, preparing for rapid policy shifts, and fostering internal and external partnerships [3].
These proactive measures align with South Korea’s broader financial strategy, where regulatory reforms anticipated by late 2025 will enable banks to issue stablecoins and provide custody services under a more formal legal framework [1][5].
Collaborative Efforts
South Korean institutions are not only acting individually but are also collaborating with each other and blockchain startups to ready themselves for a regulated environment. KB Securities, NH Securities, and Shinhan Securities, for example, are developing a common platform for security token issuance [1].
Woori Bank has entered into a mutual cooperation council with Samsung Securities and SK Securities to explore business models, verify infrastructure, and establish investment protection measures, suggesting a joint token issuance solution [1]. Piece, a Korean fractional investment marketplace, has signed a distribution deal with Woori Bank to offer two new security token products [1].
NH NongHyup Bank is independently building a token issuance platform using KISA funding and expects the platform to be ready by November this year [1]. Korea Investment & Securities is also building its own DLT issuance solution [1].
Security Token Offerings (STOs)
The new security token products by Woori Bank and Piece concern shipping finance and financing for Small and Medium Enterprises (SME) merchants [1]. Piece has agreements to promote STOs with several brokerages, including NH Investment & Securities, KDB Infrastructure, Korea Investment & Securities, Shinhan Investment & Securities, and KB Securities [1].
Despite the lack of formal legislation, the representative of NH NongHyup Bank stated that the issuance of token securities can be performed without the passage of amendments to the Electronic Securities Act and the Capital Markets Act [1].
This proactive approach to security token issuance reflects a strategic move to meet rising retail and institutional demand for crypto services while balancing innovation with risk controls and compliance [1][3]. The global adoption of security token offerings showcases the kinds of blockchain-based frameworks South Korean institutions might adopt to support security token offerings securely and efficiently without waiting for legislation to catch up entirely [2].
In summary, South Korean banks and securities companies are collaborating internally and with blockchain firms to build token issuance platforms and are progressing toward security token issuance proactively as part of a broader crypto integration strategy, leveraging evolving regulatory reforms expected later in 2025 [1][3][5]. This demonstrates a clear industry momentum to operationalize digital assets and tokenized securities ahead of full legislative support.
- South Korean financial institutions are building token issuance platforms and forming digital asset teams, such as Woori Bank's Digital Asset Team, to research and develop crypto services in anticipation of regulatory reforms.
- KB Kookmin Bank's Digital Asset Response Council coordinates a system-wide approach, preparing for policy shifts, and fostering internal and external partnerships, highlighting a systemic approach to digital assets.
- South Korean institutions, including KB Securities, NH Securities, and Shinhan Securities, are collaborating to develop a common platform for security token issuance, demonstrating industry collaboration.
- Woori Bank, in conjunction with Samsung Securities and SK Securities, is exploring business models and establishing investment protection measures for potential joint token issuance solutions.
- The foray into security token offerings (STOs) is observed across South Korean institutions, with new security token products being developed for shipping finance and Small and Medium Enterprises (SME) financing, reflecting a strategic move to meet the rising demand for crypto services while ensuring risk controls and compliance.
