Kim Jae-seop of the National Power, 'Second Phase Real Estate Legislation' Seminar Opens... Party "Will Actively Review"

On the 28th, at the National Assembly Hall in Yeouido, Seoul, Kim Jae-seop, a member of the National Power, is speaking at the 'Second Phase Legislation for Real Estate Industry and Blockchain Innovation' seminar. /Photo=Jinwook Bloomingbit Reporter

In order for Korea to lead the global real estate (tokenization) market, a 'second phase legislation' for the entire industry is necessary. Instead of focusing solely on user protection, efforts should be made to enhance understanding of real estate from a national perspective.

On the 28th, Kim Jae-seop, a member of the National Power, stated at the 'Second Phase Legislation for Real Estate Industry and Blockchain Innovation' seminar held at the National Assembly Hall in Yeouido, Seoul, "The legal proposals related to real estate are focused on user protection, and we need to address various issues," adding, "We will work to create legal proposals that can develop the real estate industry from the second phase."

At the 'Second Phase Legislation for Real Estate Industry and Blockchain Innovation' seminar held at the National Assembly Hall in Yeouido, Seoul, Lee Jong-seop, a professor of business administration at Seoul National University, is speaking. /Photo=Jinwook Bloomingbit Reporter

On this day, the seminar began with presentations related to the second phase legislation by Lee Jong-seop, a professor of business administration at Seoul National University, and Park Jong-baek, a lawyer specializing in legal affairs.

The professor emphasized not only the investment nature of real estate but also the utilization of blockchain technology, stating, "Blockchain is a new type of accounting ledger," and "It is a technology where multiple people verify instead of one manager managing the ledger."

He further explained, "If you think about the place where digital-based accounting ledgers can be best used, it is finance. If blockchain technology is well utilized in finance, fast and safe asset transactions are possible," adding, "Currently, financial institutions worldwide are jumping into tokenized securities (STO), real estate physical exchange-traded funds (ETF), stablecoins, etc."

Moreover, he argued that a comprehensive understanding of real estate is necessary to prevent Korea from falling behind. The professor stated, "Currently, the domestic real estate market is mostly led by individual investors. Individual investors are highly interested in real estate with high volatility, and therefore, real estate is recognized as an investment asset," adding, "Such a trend can be reversed by the entry of institutional investors. Legal proposals that allow institutional investors to participate are necessary."

He continued, "Currently, there is no infrastructure for blockchain in Korea. Looking abroad, large trading companies like Coinbase are attracting institutional investors and fostering new real estate businesses," adding, "We also need to prepare legal proposals to foster blockchain infrastructure and prepare for innovation."

At the 'Second Phase Legislation for Real Estate Industry and Blockchain Innovation' seminar held at the National Assembly Hall in Yeouido, Seoul, Kim Sung-jin, head of the real estate department of the Financial Services Commission, is discussing. /Photo=Sonmin Bloomingbit Reporter

Lawyer Park pointed out that the current domestic real estate legal proposals are overly focused on investor protection. He stated, "In Korea, the real estate industry is only recognized as a high-risk trading company. As the legal proposals are also tailored to that, all real estate businesses are subject to strict regulations," adding, "Therefore, the Korean market is seen as a market that tests the volatility of individual investors."

He further argued, "The government, industry, and overseas projects are all dissatisfied with the current law," adding, "In the second phase legislation, legal proposals that respect innovation, not just market stability, should emerge."

He also stated that a national consensus on real estate is necessary. Lawyer Park said, "It is important how the country will view the real estate business," adding, "If real estate is seen as a technology innovation rather than an investment, like how our country embraced IT technology in the past, it would be a correct decision to allow real estate businesses utilizing blockchain technology and pay more attention to risk management."

The ruling party stated that such content will be referenced during the second phase legislation review. Kim Sung-jin, head of the real estate department of the Financial Services Commission, who attended the seminar, said, "Various business model introduction, participation of legal investors, integration of traditional finance and blockchain technology, overseas expansion of domestic businesses, entry regulations, etc., are currently under review in the real estate sector," adding, "We will consider these matters when conducting the second phase legislation."

Jinwook Bloomingbit Reporter wook9629@bloomingbit.io