South Korea advances tokenized securities rules for 2027 market rollout

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South Korea tokenized securities rules

Highlights

South Korea’s Financial Services Commission proposed rules for tokenized securities issuance and trading, targeting a February 2027 market rollout.
Proposals require firms managing accounts to hold at least 4 billion won ($2.8 million) in equity and cap retail investors to 100 million won ($70,000) annual OTC purchases.
Public consultation for the draft regulatory package runs through Nov. 11, with implementation scheduled for Feb. 4, 2027, recognizing distributed ledgers as securities infrastructure.

Issuance rules and trading framework

As reported by Cointelegraph, South Korea’s Financial Services Commission has proposed detailed regulations governing the issuance and trading of tokenized securities as the country prepares for implementation in February 2027.

The proposal would allow stocks, bonds, funds and certain fractional investment securities to be issued and circulated in tokenized form. It also sets requirements for companies that issue and manage these products, including a minimum of 4 billion won, about $2.8 million, in equity capital for firms that directly manage customer accounts, as well as dedicated compliance and technology staff.

Separately, revisions to capital markets rules would establish an additional over-the-counter exchange license for debt securities. Retail investors would also face a ceiling of 100 million won, about $70,000, in annual net purchases on each OTC exchange.

Consultation timeline and market impact

The regulatory package builds on a three-phase roadmap unveiled on Sept. 4 to move securities issuance and trading onto distributed-ledger infrastructure. The rules now enter a public consultation period running from Friday to Nov. 11, after which the approval process begins.

The proposed measures are scheduled to take effect on Feb. 4, 2027, together with amendments that recognize distributed ledgers as infrastructure for issuing and circulating securities. For South Korea’s capital markets and crypto-related financial sector, the framework marks a step toward bringing blockchain-based securities into a regulated structure while setting operational and investor protection boundaries.

Our earlier coverage of the Federal Reserve’s 2027 inflation risk focused on Governor Lisa Cook’s warning that the buildout of AI infrastructure could add inflationary pressure that may not fade quickly, alongside more persistent supply shocks tied to geopolitical disruptions. We also noted that with inflation still above the 2% target, Fed officials have kept the option of additional rate hikes on the table, potentially extending into 2027 depending on how prices and supply constraints evolve.

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