South Korea’s Financial Services Commission has released draft amendments tied to the Electronic Securities Act and the Capital Markets Act for security tokenization, with public comments open until Nov. 11. The plan is being advanced in line with the scheduled Feb. 4, 2027 effective date of the law. Under the proposal, the scope of tokenization would be expanded to traditional securities including stocks, bonds and funds, with market access opened in stages. In the first phase, eligible products would include privately placed money market funds for institutional investors, privately placed bonds, unlisted shares structured through trusts, and publicly offered fractional investment securities. Public bonds and funds for retail investors would be opened later, after authorities assess early market conditions and demand. The update was cited by EToday.
South Korea’s Financial Services Commission has unveiled draft amendments related to security tokenization under the Electronic Securities Act and the Capital Markets Act, with the public comment period running through Nov. 11. The measures are being pushed ahead in line with the law’s scheduled effective date of Feb. 4, 2027.
The proposal would expand the scope of tokenization to traditional securities such as stocks, bonds and funds, while adopting a phased rollout.
First phase targets products for institutional investors
In the initial stage, the framework would cover privately placed money market funds for institutional investors, privately placed bonds, unlisted shares structured in trust form, and publicly offered fractional investment securities.
Retail products would open later
Public bonds and funds for retail investors would be introduced gradually after an assessment of early market operations and demand.
The report was cited by EToday.
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