South Korea sets 2027 timeline for tokenized securities market

South Korea’s Financial Services Commission (FSC) unveiled a roadmap that will allow tokenized securities to be issued, traded and settled on distributed‑ledger technology, beginning in February 2027.

Three‑stage rollout

Phase 1 – February 2027: Selected funds, bonds, unlisted stocks and fractional investment products become eligible for tokenization. The amendment to the Electronic Registration Act will create a legal route for conventional securities to be managed on‑chain.

Phase 2 – Open to all publicly offered securities: After the initial test period, tokenization will be extended to every publicly listed security. A start date is not fixed and will depend on the outcomes of Phase 1 and the adoption speed by financial firms.

Phase 3 – Stablecoin‑based settlement: The final stage will add on‑chain payment infrastructure linked to stablecoins, enabling cash‑side settlement of securities transactions. Its timing depends on pending stablecoin legislation.

Regulatory framework and participation

• Existing licensed financial institutions can handle tokenized securities under their current licenses.
• Qualifying issuers may manage their own securities accounts, provided they meet capital (≥ 4 billion won) and staffing requirements.
• Retail investors face subscription caps of the lower of 30 million won or 5 % of an issuance, and an annual OTC purchase limit of 100 million won.
• Intermediaries on OTC markets must consult the FSC and may be subject to a new licensing category for debt securities.

Technical development

Samsung SDS has been contracted to build a token securities platform for the Korea Securities Depository (KSD). The system will link KSD’s electronic securities accounts with blockchain records for issuance, circulation checks, rights management and monitoring.

Regional context

South Korea’s initiative runs alongside similar blockchain settlement projects in Japan, where authorities aim to test tokenized government bonds and stocks by early 2027.

With 11.3 million verified crypto users, South Korea is positioning its capital‑market infrastructure for digital connectivity while awaiting final stablecoin regulations.