South Korea Advances Plan To Tokenize Stocks And Bonds Under Existing Framework

South Korea's Financial Services Commission (FSC) has proposed detailed rules to allow stocks, bonds, and funds to be issued as security tokens under its existing capital markets framework.

The FSC announced the proposal on October 1, expanding a system that had focused mainly on fractional-investment products. The new rules would extend tokenization to traditional securities types, including stocks, bonds, and funds, alongside the fractional investment securities already covered.

The proposed subordinate regulations fall under the Financial Investment Services and Capital Markets Act and the Act on Electronic Registration of Stocks and Bonds. The revision proposals enter a public comment period from October 2 to November 11.