[Editorial] The Rails Are Laid Before the World Notices

Recently, countries leading in RWA (Real World Asset tokenization) include the United States, the United Kingdom, Switzerland, Germany, France, Singapore, Hong Kong, and Japan. When you look at these countries on a map, South Korea is not visible. The official rankings are not what matter; what matters is why South Korea is absent.

The world is not currently in a competition to create more coins. It is in a competition to lay down new rails for finance.

The UK is testing new technologies for trading, settling, and central depository functions of securities in its digital securities sandbox. Switzerland has been operating a digital securities exchange and central depository within the regulatory framework since 2021. The U.S. SEC also clarified in January this year that the existing securities laws apply to tokenized securities. Tokenization is not a technology that evades the law; it is a technology that changes the recording, trading, and settlement methods of finance.

The essence of this change does not lie in the name RWA. It is about the system on which stocks, bonds, funds, deposits, and money will be issued, traded, and settled in the future. If assets and money move simultaneously, and if investor qualifications and regulatory compliance operate automatically within the trading structure, the costs and speed of the capital market could fundamentally change.

The world is changing the plumbing of the capital market, not asset prices.

South Korea is not a country without technology. The Financial Services Commission announced a plan for the institutionalization of token securities in 2023, and the Bank of Korea has been testing deposit tokens and programmable finance.

The problem is speed.

The legislation related to token securities only passed the National Assembly in January 2026. The actual implementation of the system is set for February 2027. This means it will take four years from the announcement of the policy direction in 2023 for the market to gain a legal foundation.

That’s not all. The Digital Asset Basic Law, which will encompass cryptocurrency issuance, distribution, and business regulations, as well as stablecoins, is still not complete. In March, the Financial Services Commission referred to this as the 'Virtual Asset Phase 2 Law' and stated that it would discuss the government review plan and promote consultations with the ruling party. The core issues surrounding the issuance structure of stablecoins are still in the design phase.

While the world is creating the rules for future finance, we are still discussing the rules.

What is more concerning is the perspective of the South Korean financial market.

We are still talking about how much the KOSPI has risen, whether individual money has gone into stocks or coins, and which market's trading volume has increased.

Reviving the stock market is a good thing. It is also essential to eliminate the Korea discount and ensure that corporate value is properly assessed.

However, raising stock prices and seizing the future of finance are different issues.

Korea is looking at where money will go in the existing market.

Singapore, Hong Kong, the UK, and Switzerland are creating the paths that money will take in the future.

This difference may become clearer next month.

At the end of September, Korea Blockchain Week (KBW) will be held in Seoul. A week later, TOKEN2049 will take place in Singapore. TOKEN2049 expects over 25,000 participants from more than 7,000 companies across 160 countries this year.

Recently, I have been hearing the same story from several global cryptocurrency company representatives I know.

"This year, we are skipping Seoul and going to Singapore."

This is not official statistics. It should not be generalized to the movements of all global companies. However, the fact that such statements are starting to emerge should not be taken lightly.

The reasons they mention are similar. South Korean investors' interest has significantly shifted to the stock market, and the enthusiasm for the cryptocurrency market is not what it used to be. The upcoming taxation on cryptocurrency income, scheduled to begin in January 2027, is also mentioned. Although the taxation has not yet been implemented, foreign companies are positioning people and money based on not only today's trading volume but also tomorrow's market environment. Under current law, taxation on cryptocurrency transfer and lending income is set to begin on January 1, 2027.

What we should be worried about is not the number of KBW attendees.

It is whether they are merely skipping the Seoul event or starting to skip the Korean market altogether.

Speculative funds move easily. Money that goes into stocks today can go into coins tomorrow and to the U.S. market the day after. Prices and trading volumes can flip in a single cycle.

Financial infrastructure is different.

Once the rails are laid, banks, securities firms, custodians, issuers, investors, and capital attach themselves to it. Laws, accounting, and settlement practices follow.

The advantage of price is short-lived. The advantage of infrastructure lasts for decades.

What the government needs to do is not decide which market to funnel money into between stocks and cryptocurrencies. It is to create financial infrastructure that allows any asset to be issued, traded, custodied, and settled in Korea.

The token securities law alone is not enough. A Digital Asset Basic Law is needed, and rules for stablecoins must also be established. Securities, deposits, digital currencies, and payment systems must be able to move together.

Railroads are not built by merely permitting a single locomotive. Tracks, stations, signals, and operating rules must all be in place.

Finance is no different.

Korea has technology. There are financial companies and world-class IT and payment infrastructure.

What is lacking is not capability.

It is speed and direction.

Korea is still looking at prices.

The world is laying down the rails.

The law can wait.

The market does not.

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