South Korea Financial Services Commission plans new licences for fractional investment trading platforms capped at two approvals

The South Korea Financial Services Commission (FSC) announced plans to introduce a new licensing regime for fractional investment trading platform services, creating a formal authorization framework for over-the-counter distribution platforms for fractional investment securities. The move is intended to transition these services from operating under a financial regulatory sandbox to a legislative basis, as amendments to the Financial Investment Services and Capital Markets Act and subordinate regulations are expected to be completed by the end of September. The framework covers secondary market trading of securities that represent fractional ownership interests in underlying assets such as real estate and music copyrights. Following a June rule change that enabled issuance in the primary market, the FSC expects the remaining rule changes needed for distribution to be completed by the end of September. To support liquidity concentration and investor protection in an early-stage market, the FSC plans to grant licences to a maximum of two applicants. Where multiple applicants apply, screening will be conducted en bloc using an external expert review committee that scores applicants, with the Securities and Futures Commission and the FSC making the subsequent licensing decisions. Applicants will be assessed against FSCMA licensing requirements, with additional advantages for consortium applications, SME-specialized securities businesses, and applicants able to launch services quickly. Once the rule changes authorizing fractional investment trading platform services take effect, expected from September 25, 2025, the FSC will announce an application window of about one month and begin accepting preliminary licence applications.