South Korea Unveils Three-Phase Plan for Tokenized Securities

The Financial Services Commission (FSC) of South Korea has unveiled a three-phase plan to integrate tokenized securities into the country's existing capital markets framework.

The roadmap, which aims to bring tokenization into mainstream finance, will begin on February 4, 2027, when an update to the Act on Electronic Registration of Stocks and Bonds takes effect. This is closely tied to a broader rollout of amended capital markets and electronic securities laws.

Phase one of the plan focuses on institutional money market funds, bonds, unlisted stocks, and fractional investment securities. Phase two will expand tokenization to all publicly offered securities, while phase three targets onchain settlement through stablecoin-linked payments.

The FSC will work with the Korea Securities Depository (KSD) to build the necessary infrastructure for tokenized securities.