South Korea Proposes Tokenized Securities Rules for Capital Markets

South Korea has proposed detailed rules for bringing tokenized securities into its regulated capital markets from February 4, 2027. The country's Financial Services Commission (FSC) outlined the regulations in a public consultation that will run until November 11.

The proposed rules include requirements for issuers managing customer accounts, which must have at least KRW4 billion in equity capital and employ dedicated compliance and technology staff members. Distributed ledgers must involve two account managers plus the Korea Securities Depository under the proposed framework.

Retail investors will face a KRW100 million annual net purchase limit on each licensed over-the-counter (OTC) exchange. The FSC described this measure as an investor-protection requirement for the new trading system.