South Korea proposes rules for tokenised securities ahead of 2027 rollout

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South Korea’s Financial Services Commission (FSC) has proposed new rules for issuing and trading tokenised securities ahead of the country’s planned framework taking effect in February 2027.

The rules would allow stocks, bonds, funds and certain fractional investment products to be issued and traded in tokenised form. Companies issuing and managing these securities while directly operating customer accounts would need at least 4 billion won ($2.8 million) in equity capital, along with dedicated compliance and technology staff.

Separate changes to capital markets rules would introduce an additional over-the-counter exchange licence for debt securities. Retail investors would also face an annual net purchase limit of 100 million won ($70,000) per OTC exchange.

The proposals are open for public consultation until 11 November. The new rules are scheduled to take effect on 4 February 2027 alongside amendments recognising distributed ledgers as infrastructure for securities issuance and circulation.