[Market Insight] Investing in Aviation Finance and Commodities Becomes Possible with 'Stock Apps'

Interview with Jeong Jong-won, Head of DT Strategy Team at Eugene Investment & Securities
"We will build the reputation of 'STO at Eugene'"

Jung Jong-won, Head of DT Strategy Team at Eugene Investment & Securities, is conducting an interview with Asia Economy regarding token securities at the Yeouido headquarters in Seoul on the 22nd. Photo by Eugene Investment & Securities

"We are preparing products that allow easy investment in aircraft finance, metal raw materials, intellectual property (IP), and more through a stock application (app)."

Jung Jong-won, head of the DT Strategy Team at Eugene Investment & Securities, said in an interview with Asia Economy on the 22nd at the company's headquarters in Yeouido, Seoul, "We have completed building a platform that enables trading of token securities (ST) through the Mobile Trading Service (MTS)." Eugene Investment & Securities recently finalized the token securities issuance (STO) platform that has been under development since June last year. Since the related law is pending in the National Assembly, they have recently applied to the Financial Services Commission for designation as an innovative financial service.

ST utilizes distributed ledger technology to digitize securities under the Capital Markets Act. It is distinguished from 'virtual assets,' which are digital assets not classified as securities. While similar to electronic securities, ST is characterized by the use of decentralized blockchain technology. It enables securitization of all products, including artworks, real estate, and music copyrights, allowing them to be traded like stocks.

In February last year, the Financial Services Commission announced the 'Regulatory Framework for Token Securities Issuance and Distribution,' allowing securities firms to enter the fragmented investment market that was previously dominated by individual platforms. According to Hana Financial Management Research Institute, the domestic STO market is expected to grow from 34 trillion KRW in 2024 to 367 trillion KRW by 2030. About ten domestic securities firms are developing their own issuance and distribution platforms, with some linking services to Koscom.

Jung Jong-won, Head of DT Strategy Team at Eugene Investment & Securities, is conducting an interview with Asia Economy regarding token securities at the headquarters in Yeouido, Seoul, on the 22nd. Photo by Eugene Investment & Securities

Team leader Jung said, "When the financial authorities announced the ST guidelines in February last year, there was some skepticism about whether it would work. However, in December, the Korea Exchange's new securities market was designated as an innovative financial service, additional guidelines were issued, and fractional investment in artworks was approved as the first investment contract security, among other concrete follow-up measures. The industry's response has changed significantly."

The market mainly expects that the over-the-counter (OTC) market led by individual securities firms will take the forefront rather than on-exchange trading centered on the Korea Exchange. This is because the exchange requires a single underlying asset to meet a scale requirement of at least 3 billion KRW. For companies struggling with 500 million or 1 billion KRW, meeting these requirements is difficult. It is rumored that inquiries are coming from seed-stage and Series A or earlier startups with tight funding. For securities firms, this also means discovering potential unicorns (unlisted companies valued at over 1 billion USD).

He said, "Once the STO market opens, it will be possible to issue and trade small amounts of various non-standard securities that current regulations cannot accommodate. This aligns with the core function of securities firms as 'corporate fundraising channels.' Leveraging Eugene Investment & Securities' strengths in new business and new technology sectors, especially in venture and small-to-medium business fields, it will become a growth finance alternative that can accompany companies through stages such as pre-IPO (pre-listing equity investment)."

He explained that ST will also be an attractive alternative for customers seeking higher returns. It is meaningful in terms of diversifying products for customers who are not satisfied with traditional investment products like stocks during the 'Boxpi (KOSPI + box range)' era. The fact that customers' everyday content can be productized is also seen as an investment incentive.

Team leader Jung emphasized, "Although the risk may be somewhat higher, products with significant added value that can yield double-digit returns will be introduced. It is important to provide products that investors can trust and invest in. Through long experience in the financial investment industry and the review capabilities of the trust department, we will build a reputation that 'STO is at Eugene.'"

This content was produced with the assistance of AI translation services.