South Korea Plans Tokenized Securities Market

South Korea is set to launch a comprehensive, three-stage plan to tokenize its capital markets, beginning in February 2027 with an initial focus on specific funds, bonds, and unlisted securities. The initiative, unveiled by the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), aims to bring traditional financial assets onto blockchain networks, with a long-term objective of enabling settlement through stablecoins. The first phase of the roadmap is scheduled to commence on February 4, 2027, coinciding with the effective date of amendments to the Electronic Registration Act. This initial rollout will include privately placed money market funds, corporate bonds designated for institutional investors, unlisted stocks issued through trust structures, and publicly offered fractional investment securities. This marks a significant expansion beyond the fractional products that have been the primary focus of earlier tokenization efforts. Following the successful implementation of the first phase, subsequent stages will broaden the scope. Phase two plans to extend tokenization to all publicly offered securities.