South Korea to launch tokenized securities market in 2027

South Korea’s Financial Services Commission has proposed a regulatory framework to allow the issuance and circulation of tokenized securities, including stocks, bonds, and funds, starting February 4, 2027.

The proposal follows legislation passed earlier this year that recognized security tokens as a digital form of securities. The rollout will follow a three-phase roadmap, initially focusing on private money-market funds, bonds for institutional investors, trust-based tokenization of unlisted stocks, and publicly offered fractional-investment securities.

To ensure market stability, the proposed rules include strict requirements for issuers. Companies managing customer accounts directly must maintain at least 4 billion Korean won ($2.8 million) in equity capital and employ dedicated compliance and technology staff. Additionally, the framework introduces an over-the-counter (OTC) exchange license for debt securities and imposes a 100 million won ($70,000) annual limit on net purchases for retail investors on each OTC exchange.

The regulations will undergo public consultation from October 2 through November 11 before proceeding through the final approval process.