Exhibition in Goyang City presents blockchain’s use in digital media

Survey Reveals Over Half of Korean Financial Firms Eyeing Both Issuance and Distribution of Security TokensIn a recent survey conducted by fintech solution provider Koscom, it was found that more than half of South Korean financial companies interested in security token businesses are planning to undertake both the issuance and distribution of security tokens. This result reflects the belief of the financial firms that if they engage only in the secondary market, they will experience reduced profitability due to the necessity of lowering transaction fees amidst fierce competition, as per local business newspaper Hankyung.Photo by Shubham Dhage on Unsplash62% of financial firmsAt a seminar held today, Koscom revealed the result of this survey it conducted among a total of 95 entities interested in security tokens, consisting of 30 securities firms, three banks, one asset management company, and 61 token issuers. Among the financial firms that belong to the first three categories, 62% answered that they will conduct both the issuance and distribution of security tokens. 31% expressed a preference for conducting only issuance, while 7% were inclined towards distribution alone.The survey also highlighted that 38% of financial companies hold a positive outlook on the security token market, although they acknowledge insufficient understanding. Additionally, 34% of respondents anticipate that the security token market will rival the exchange-traded fund (ETF) market in terms of size, while only 10% believe it will eventually replace the initial public offering (IPO) market.Cultural contentWhen it comes to the underlying real-world assets (RWAs) for security tokens, cultural content emerged as the most preferred option, with 71% of respondents selecting it. Real estate followed closely at 66%, with energy (55%), artworks (41%), and agriculture and fisheries (21%) also garnering interest. Respondents were allowed to choose multiple options for this section.Similarly, cultural content remained the top choice among token issuers, favored by 21% of respondents. It was followed by real estate (16%), artworks (14%), intellectual property (14%), and agriculture and fisheries (9%).A Koscom official attributed the preference for cultural content and real estate as underlying assets to their accessibility and profitability.This seminar, organized by Koscom, aimed to create a supportive environment for issuers and distributors struggling to promote security token businesses. Hong Woo-sun, CEO of Koscom, said the company will leverage its expertise in the capital market and blockchain technology to collaborate with authorities and relevant organizations in lowering barriers to entry for market participants who need technical infrastructure.

Terraform Labs seeks summary judgment to dismiss SEC allegationsLawyers representing bankrupt Singaporean crypto firm Terraform Labs and its co-founder, Do Kwon, have requested a summary judgment from a New York judge in their legal battle against the United States’ Securities and Exchange Commission (SEC).If granted, such a dismissal could potentially spare them from a full-blown trial. In their motion, the legal team argued vehemently that they are innocent of the SEC’s allegations, maintaining that the regulator has failed to provide any compelling evidence of wrongdoing.Photo by Bermix Studio on UnsplashDefining a securityThe motion, which was filed last Friday in the U.S. District Court for the Southern District of New York, asserts that the implicated cryptocurrencies of Terra Classic (LUNC), TerraClassicUSD (USTC) and Mirror Protocol (MIR), together with its Mirrored assets (mAssets), are not securities as claimed by the SEC in its complaint.The heart of the matter revolves around the SEC’s assertion that Terraform Labs offered or sold securities, a claim vehemently denied by the defendants. The SEC initially brought the case in February, referencing algorithmic stablecoin TerraUSD, which famously collapsed in May 2022.Lawyers claim case is unsubstantiatedBoth Kwon and Terraform Labs’ attorneys argued that despite over two years of investigation, more than 20 depositions, and the exchange of a staggering two million pages of documents, the SEC’s case remains unsubstantiated.The SEC’s original complaint in February accused Kwon and Terraform of raising substantial sums from investors by offering and selling an inter-connected suite of crypto asset securities, many of which were unregistered transactions. SEC Chair Gary Gensler added that Terraform and Kwon had failed to provide investors with full disclosures, notably concerning LUNA and TerraUSD.A key element of the dispute centers on the SEC’s allegation that Kwon and Terraform moved millions of dollars into Swiss bank accounts for personal gain. According to the agency’s complaint, the company and Kwon transferred 10,000 bitcoins to a financial institution based in Switzerland. The legal team representing Kwon and Terraform vehemently denies this allegation, characterizing it as baseless and unfounded.Flawed stablecoin designAlgorithmic stablecoins, such as TerraUSD, operate using market incentives via algorithms to maintain a stable price. Terra was tied to Luna, a governance token, in an attempt to stabilize prices. Unfortunately, the collapse of TerraUSD in 2022 destroyed in excess of $40 billion in value held by investors. It also had a domino effect, leading to a series of other crypto platform collapses later in 2022.Judge Jed Rakoff, presiding over the case in the Southern District of New York, had previously denied an attempt by Terraform Labs and Kwon to have the case dismissed. This new motion for summary judgment represents their latest effort to put an end to the legal proceedings.In a separate but related action, lawyers representing Terraform Labs Co-Founder Daniel Shin asserted that Shin played no role in the collapse of TerraUSD. In a Seoul district court, they emphasized that Shin had nothing to do with the collapse despite being indicted in South Korea in April on various charges, including fraud.

Korea’s KFTC launches blockchain-powered loan service for public servantsThe Korea Financial Telecommunications and Clearings Institute (KFTC) today launched a new blockchain-based loan service tailored specifically for public servants. This initiative is a collaborative effort with the Government Employees Pension Service (GEPS) and involves five banks: BNK Kyongnam Bank, Busan Bank, Woori Bank, Kwangju Bank and Jeonbuk Bank.Photo by REDioACTIVE on PixabaySimplified loan processAdministered by GEPS, this loan program offers loans up to KRW 50 million (approximately $38,600) to government employees based on their projected retirement benefits and years of service. Leveraging the joint financial blockchain system, KFTC has established an infrastructure to issue and verify digital loan recommendation letters, simplifying the loan application process for public servants.Up until now, the loan application process has been cumbersome, requiring government employees to obtain a recommendation letter from GEPS and physically submit it at a bank branch. The new service streamlines this process by allowing them to apply for loans at bank branches or through mobile banking using digitized recommendation letters.More banks to joinKFTC and GEPS are set to increase the number of participating banks, allowing government employees to access loan services at a total of 10 banks. Furthermore, KFTC and GEPS intend to introduce additional financial products that utilize recommendation letters and verification processes underpinned by blockchain technology.The plan indicates that starting early next year, five additional banks will participate in this initiative. These banks are KB Kookmin Bank, Nonghyup Bank, Daegu Bank, Hana Bank and Korea Post.In a statement, KFTC stated its plans to further expand identification verification services within the financial sector, aiming to streamline the application processes for various financial products, including deposits and loans.