South Korea's Financial Services Commission has published a three-stage roadmap for tokenized securities, with a legal framework taking effect Feb. 4, 2027.
Phase one targets institutional investors through private money-market funds and privately placed corporate bonds. Unlisted equities will use a trust-beneficiary structure—shares remain registered conventionally while investors hold tokenized claims on the trust—to minimize settlement friction.
The second phase expands to publicly offered securities, contingent on stable operation of phase one. The third phase introduces on-chain settlement via stablecoins, completing integration into the traditional finance stack.
Existing securities firms need no new licenses for tokenized instruments if they already hold securities licenses. OTC platforms introducing tokenized products must register with the Financial Supervisory Service and face a 100 million won ($74,000) annual retail purchase limit per platform.
Non-bank issuers maintaining investor accounts for tokenized securities must register and hold 4 billion won ($3 million) in equity capital. These entities must also staff dedicated roles in account management, compliance and IT support.
