South Korea advances tokenized securities rules ahead of 2027 rollout
South Korea’s Financial Services Commission has proposed detailed rules for issuing and trading tokenized securities ahead of a broader regulatory framework set to begin in February 2027. The plan would allow stocks, bonds, funds, and certain fractional investment products to be issued and circulated on distributed-ledger infrastructure. Issuers that directly manage customer accounts would face requirements including at least 4 billion won in equity capital plus dedicated compliance and technology staff. Separate capital markets revisions would add an over-the-counter exchange license for debt securities and limit retail investors to 100 million won in annual net purchases per OTC exchange. The proposal follows a three-phase roadmap for moving securities issuance and trading onto blockchain-based systems. Public consultation runs until Nov. 11, with the rules scheduled to take effect on Feb. 4, 2027.
