South Korea Sets Stage for Tokenized Securities in 2027
South Korea has proposed detailed rules for bringing tokenized securities into its regulated capital markets from February 4, 2027. The rules cover which securities can be tokenized, how distributed ledgers must operate, and requirements for issuers managing customer accounts.
Under the proposed framework, conventional securities such as stocks, bonds, and investment funds can be issued and circulated in tokenized form. The Financial Services Commission requires issuer account management entities to employ at least one account-management professional, one internal-control professional, and two information-technology professionals.
Retail investors will face an annual net purchase limit of KRW100 million on each licensed OTC exchange, according to the FSC proposal. Regulators described the measure as an investor-protection requirement for the new trading system.
The FSC has spent 2026 developing the technical, issuance, and trading rules needed before the laws become operational. Once the first stage begins, authorities plan to monitor the initial products before opening tokenization to all publicly offered securities.