South Korea's FSC Proposes Rules Change to Pave Way for Securities Tokenization, Effective Feb 4, 2027
The Financial Services Commission (FSC) has proposed revisions to subordinate regulations under the Financial Investment Services and Capital Markets Act and the Act on Electronic Registration of Stocks and Bonds. These changes aim to facilitate the issuance and circulation of tokenized securities, with an effective date of February 4, 2027. The proposals, which will undergo a comment period from October 2 to November 11, 2026, include allowing traditional securities (stocks, bonds, funds) and fractional investment securities to be tokenized. Distributed ledgers must be shared across two or more account management entities, and issuer account management entities will face a minimum equity capital requirement of KRW4 billion. To protect investors, a maximum annual net purchase limit of KRW100 million per OTC exchange will be set for retail investors.
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