South Korea adds token securities to capital market overhaul
South Korea is folding token securities into a wider overhaul of its capital markets, alongside faster settlement, longer trading hours and greater use of AI. The Financial Services Commission launched a review meeting to coordinate reforms across agencies and market operators, while token securities will continue to be discussed through a separate public-private council. Key market changes include a plan to shorten the securities settlement cycle by October and a Korea Securities Depository system for settling OTC trades in unlisted shares and fractional investment products by the end of 2026. The token securities framework is scheduled to take effect in February 2027, after subordinate rules and infrastructure are completed. The National Assembly already approved amendments recognizing distributed ledgers as valid securities registries and allowing issuance and circulation of token securities. Samsung SDS is building a KSD token securities platform due by February 2027.
