South Korea Proposes Rules for Tokenized Securities Ahead of 2027 Launch

South Korea’s Financial Services Commission has proposed detailed rules for issuing and trading tokenized securities, ahead of a regulatory framework scheduled to take effect on February 4, 2027.

The proposed rules would allow traditional securities, including stocks, bonds and funds, to be issued and circulated in tokenized form alongside certain fractional investment securities. The framework is based on amendments to the country’s Electronic Securities Act and Financial Investment Services and Capital Markets Act.

Companies that issue tokenized securities while directly managing customer accounts would need at least 4 billion Korean won ($2.8 million) in equity capital. They would also have to employ dedicated compliance and technology staff, including at least one account management professional, one internal control professional, and two IT professionals.

The proposal also sets investor protection measures for the new market. Retail investors would be limited to 100 million won ($70,000–$73,000) in annual net purchases on each licensed over-the-counter exchange. The proposal would also introduce an additional OTC exchange licensing category for debt securities.

The proposed rules will be open for public comment from October 2 to November 11, 2026, before going through the approval process. If adopted, they will take effect alongside the amended legislation in February 2027.

The rules build on a three-phase roadmap the FSC announced in September, after considering the Digital Asset Bill in July. The first phase covers legal recognition and initial tokenized securities, while later stages are intended to expand the range of assets and eventually connect tokenized securities with onchain payment infrastructure.