The South Korea Financial Services Commission has published draft implementing rules for the tokenized securities framework scheduled to take effect on Feb. 4, 2027. Translating its September policy roadmap into subordinate regulation, the proposals define eligible securities, distributed ledger standards, issuer account manager requirements and the over-the-counter trading regime. Tokenization would be available for conventional securities such as stocks, bonds and funds, as well as fractional investment securities. A qualifying distributed ledger would need to include the electronic registration institution and at least two account management institutions, including any issuer account manager, while direct compensation for using the ledger for electronic registration would be prohibited. Issuer account managers would need at least KRW 4 billion in capital and designated account management, internal control and information technology personnel. The proposals would also create an over-the-counter exchange license category for debt securities, supplementing those for unlisted shares and noncash trust beneficiary securities. Retail investors would face an annual net purchase limit of KRW 100 million at each venue. The rules are expected to take effect alongside the amended legislation after the remaining approval and review procedures.
South Korea Financial Services Commission consults on tokenized securities rules for February 2027 rollout
The South Korea Financial Services Commission is consulting on implementing rules for the tokenized securities framework due to take effect on Feb. 4, 2027. The proposals set eligible securities, distributed ledger conditions and a KRW 4 billion capital requirement for issuer account managers. They also establish an over-the-counter license category for debt securities and cap each retail investor’s annual net purchases at KRW 100 million per venue.