South Korea Financial Services Commission reported that the National Assembly has approved amendments to the Act on Electronic Registration of Stocks and Bonds and the Financial Investment Services and Capital Markets Act, establishing a legal basis to issue and circulate securities in tokenized form recorded and managed on a blockchain-based distributed ledger. The changes recognise distributed ledgers for securities registration while keeping security tokens within the existing securities regulatory perimeter. Under the revised Electronic Registration Act, distributed ledger is defined and legally recognised as a securities registry, allowing issuers to issue securities as security tokens subject to required procedures including notification and electronic registration with the Korea Securities Depository. Because security tokens are treated as securities under the Financial Investment Services and Capital Markets Act, unlicensed brokerage intermediation remains prohibited and token offerings are subject to the same registration and disclosure requirements as ordinary securities. Separately, the revised Financial Investment Services and Capital Markets Act permits investment contract securities to be circulated through securities businesses, replacing the prior framework under which issuers had to recruit investors directly. The legislation is expected to take effect one year after promulgation, anticipated in January 2027, after infrastructure for distributed ledger-based account management is established and more detailed investor-protection rules are prepared. The Financial Services Commission plans to launch a joint consultative body with the Financial Supervisory Service, the Korea Securities Depository, the Korea Financial Investment Association and market participants, with a kickoff meeting in February 2026 and working divisions covering technology and infrastructure, issuance rules and circulation rules.
South Korea Financial Services Commission 2026-01-15
South Korea Financial Services Commission announces National Assembly passage of amendments enabling security token issuance and circulation
South Korea's Financial Services Commission announced that the National Assembly approved amendments to establish a legal framework for tokenized securities on a blockchain-based ledger. Effective January 2027, the laws recognize distributed ledgers as securities registries and maintain security tokens within existing regulations. A consultative body will begin in February 2026 to address technology, infrastructure, and regulatory rules.