South Korea’s Financial Services Commission plans to publish detailed rules for tokenized securities in July, setting out the framework before amendments to the Capital Markets Act and the Electronic Securities Act take effect on Feb. 4, 2027. The plan was reviewed at the second public-private tokenized securities council meeting on May 15, where participants discussed issuance, trading, settlement and market infrastructure.
July package to cover issuance models and standard securities
The FSC is studying how tokenized stocks, bonds and money market funds should be handled under the coming regime, while also working on investor-protection standards for issuance. One area under review is whether some fractional investment products can be structured around pooled assets of the same type, replacing the current limitation that often ties such products to a single asset, such as one property.
FSC Vice Chairman Kwon Dae-young said the regulator will pursue a pooled issuance model within a defined scope, with market order and investor protection kept as core conditions. He also said the final model for fractional investment issuance is targeted for July after industry feedback is reflected. The same policy package is expected to include a roadmap for tokenizing standard securities, including stocks, bonds and MMFs.
Blockchain migration will be phased, not immediate
South Korea is not planning to move all electronic securities onto blockchain in one step. Authorities are preparing staged tests instead, covering rights processing, trading, settlement and on-chain payment systems, with the aim of avoiding conflict with the existing market structure. The approach points to integration first. Full replacement is not the current objective.
The council also noted that overseas markets are already testing tokenized public securities, green bonds and tokenized MMFs. By placing standard securities on its roadmap, South Korea is broadening the scope of tokenization from limited pilots toward a more complete market structure.
Samsung SDS is building the KSD token securities platform
Regulatory planning is moving in parallel with infrastructure work. A report cited by crypto.news said Samsung SDS won a contract to build and operate a token securities platform for the Korea Securities Depository. The platform is expected to connect KSD’s existing electronic securities account system with blockchain-based records.
Its planned functions include issuance support, circulation checks, rights management and real-time monitoring ahead of the 2027 rollout. That combination of rulemaking and system construction shows South Korea is trying to make tokenized securities operational rather than leaving them at the policy stage.
Digital asset rulemaking is expanding on a separate track
Broader digital asset policy is also advancing in South Korea. Earlier reports said the ruling party finalized a draft Digital Asset Basic Act covering stablecoins, tokenized products and digital asset service providers. Separately, crypto.news reported that the FSC planned to lift a long-standing corporate crypto investment ban and allow eligible listed firms and professional investors to allocate up to 5% of equity capital to top crypto assets.
These measures belong to different regulatory tracks, but they are moving in the same period: one for crypto markets, another for tokenized securities. The next major checkpoint is the July release of the detailed rule package.