South Korea Unveils 3-Phase Plan to Digitize Securities Market via Blockchain Tokenization
The South Korean government has announced a comprehensive three-phase plan to digitize its entire securities market through blockchain tokenization. The Financial Services Commission (FSC) and Financial Supervisory Service (FSS) revealed the initiative on Friday, outlining the strategy for the nation's capital markets. According to the plan, the initial rollout is scheduled for February 4, 2027, when the revised Electronic Registration Act becomes operational.
During this phase, private money market funds and corporate bonds designated for institutional participants will undergo tokenization first. Unlisted equities will also be digitized using a trust-based framework, where original shares remain in the conventional registry while investors hold a tokenized trust-beneficiary instrument. Retail market participants trading on over-the-counter platforms will face an annual net acquisition ceiling of 100 million won (approximately $74,000) per trading venue.
The second phase is set to expand tokenization eligibility to encompass all publicly offered securities pending successful first-phase implementation. The third and concluding phase aims to establish a blockchain-native payment infrastructure enabling investors to settle tokenized securities transactions using stablecoins.