South Korea Unveils Blockchain Tokenization Plan for Stocks, Bonds, and Funds
South Korea's financial regulator has unveiled a three-stage plan to tokenize stocks, bonds, and funds on a blockchain. The goal is to modernize its capital markets and create new ways for companies and investors to raise and use money as the country's semiconductor industry experiences a massive boom.
The Financial Services Commission (FSC) has laid out clear rules to protect investors and guide companies in the tokenization process. Existing securities firms can handle tokenized securities with their current licenses, while retail investors using over-the-counter venues will have an annual net-purchase limit of 100 million won ($74,000 USD).
The first phase of the plan kicks off when the amended securities law takes effect on February 4, 2027. During this phase, privately placed money-market funds and corporate bonds for institutional investors, unlisted stocks issued through a trust structure, and publicly offered fractional-investment securities will be tokenized.
The second phase will expand the system to include all publicly offered securities, while the third phase aims to build a settlement system directly on the blockchain. This means investors will be able to settle their tokenized trades using stablecoins.