South Korea's Financial Services Commission announced a comprehensive three-stage plan to introduce a tokenized securities framework, with infrastructure building set to begin in 2027. Legal amendments providing blockchain-based securities with formal recognition are scheduled to take effect on Feb. 4, 2027.
The initial phase will focus on institutional instruments: private money-market funds and privately placed corporate bonds. Unlisted equities will not move directly to blockchain; instead, investors will receive tokenized trust-beneficiary securities backed by underlying shares held in a trust.
Successful completion of the first phase enables expansion to publicly offered securities in the second stage. The final stage implements on-chain settlement using stablecoins, completing blockchain integration.
The FSC cited BlackRock's BUIDL tokenized fund and Hong Kong's tokenized green bonds as reference models. Securities brokerages and trading firms operating under existing licenses require no additional permits to handle tokenized securities. Over-the-counter exchanges must consult the Financial Supervisory Service; retail investors face a 100 million won ($74,000) annual net purchase limit per platform.
Non-bank issuers maintaining investor accounts for their own tokenized securities must register with the FSC, maintain 4 billion won ($3 million) in equity capital and employ dedicated compliance and technology staff.
The transition presents material technical and operational risks. Integrating existing market infrastructure with blockchain systems, scaling stablecoin settlement across publicly offered securities, and operationalizing tokenized trust-beneficiary structures for unlisted equities all present critical execution challenges.
