South Korea’s National Assembly has passed amendments tied to security token offerings, creating a formal legal route for blockchain-based securities issuance and trading. The changes to the Capital Markets Act and the Electronic Securities Act were approved in a plenary session, pushing the country’s digital finance agenda into a new phase.
According to the Financial Services Commission, the framework brings distributed ledger technology under existing capital-market rules rather than treating tokenized products as a separate category. Under the revised Electronic Securities Act, qualified issuers can legally issue tokenized securities. Changes to the Capital Markets Act allow those products to trade as investment contract securities through licensed brokerages. The legal scope is broad, covering equity, debt, and other regulated instruments that can now adopt tokenized formats under supervision.
Ledger-based account management enters the securities system
The FSC said the structure supports ledger-based securities account management and wider use of smart contracts. Regulators expect better transparency across issuance, settlement, and record keeping. The point is not only to permit issuance, but to define how these products are controlled once they enter the market.
The updated rules also widen access to non-standard investment contract securities, including real estate, art-linked assets, and livestock-related investment projects. Distribution of those products had been constrained by standardization and regulatory limits. Under the new system, participation can expand, though strict disclosure and custody requirements remain part of the framework.
One-year preparation period before launch
After clearing parliament, the bills will move to the State Council and then to presidential promulgation. The effective date is set for January 2027, leaving a one-year preparation period. The move builds on earlier regulatory work. In 2023, the FSC issued guidance and has since been working to connect blockchain infrastructure with traditional finance.
Implementation will be led by the FSC in coordination with supervisory bodies and market participants through a consultative body that includes regulators and industry associations. The group plans to develop ledger-based account systems and stronger custody protections, with its kickoff meeting scheduled for next month.
Market projections are shaping industry plans
Forecasts help explain the urgency. Standard Chartered projected that tokenized real-world assets could reach $2 trillion by 2028. Separately, a Hankyung report citing Boston Consulting Group estimated South Korea’s token securities market at ₩367 trillion, or about $249 billion, by the end of the decade.
That outlook is already feeding into corporate planning. Mirae Asset Securities and Hana Financial Group are advancing platforms and strategic collaborations tied to the sector. At the same time, South Korea is still preparing its Digital Asset Basic Act, placing tokenized securities within a regulated extension of the country’s capital markets framework.