November 28, 2024

• 

Ahn In-seong (left), head of the digital division at Mirae Asset Securities, and Oh Se-hyun, head of SK Telecom's Web3 business, pose for photos after agreeing to form the Next Finance Initiative consortium at Mirae Asset Center 1 in central Seoul, Thursday. (Mirae Asset Securities)

South Korea's largest securities firm Mirae Asset Securities and telecommunications giant SK Telecom on Thursday formed a consortium called Next Finance Initiative to become a leader of the new emerging security token industry.

"We expect to establish a firm position as a global platform that leads the security token industry by combining Mirae Asset Securities' financial expertise with SK Telecom's ICT capabilities and service operation experience,” said Ahn In-seong, the head of the digital division at Mirae Asset Securities.

Ahn added that this initiative is meaningful, as it can attract other domestic companies to actively participate in creating a token securities ecosystem in Korea.

“We will create a foundation for various projects with Web3 philosophy and innovation to grow within the regulatory framework,” added Oh Se-hyun, who oversees SK Telecom's Web3 business.

This initiative came after the Financial Services Commission in February released guidelines on security token offerings, which stated that digital assets that provide the rights to dividends or residual assets will be categorized as security tokens and be regulated.

When releasing the guideline, the financial regulator emphasized that it was established with the intention to allow issuance and distribution in a regulated and safer environment for investors, and does not intend to hinder further development.

The key projects that the two firms will work on together include establishing infrastructure for a security token, searching for assets that can be developed to issue blockchain-powered digital tokens, and creating synergy to further develop related services.

In particular, the consortium will work as an incubator or accelerator to assist participating domestic startups or projects.

Furthermore, the two companies said they will also contribute to making an ecosystem that properly protects investors.

According to the investment bank and securities firm, after creating a safe ecosystem for security tokens, the consortium’s next step will be to jointly expand its business outside of Korea.

By Song Seung-hyun (ssh@heraldcorp.com)