South Korea Approves Legal Framework for Tokenized Securities
TL;DR
South Korea approved laws recognizing tokenized securities as financial instruments.
The regulations will take full effect in January 2027.
The local tokenized securities market could reach $249 billion by 2030.
South Korea’s National Assembly approved amendments to key financial laws. The changes recognize tokenized securities as legitimate financial instruments. The amendments affect the Capital Markets Act and the Electronic Securities Act. This step establishes a formal regulatory framework for issuing and trading these assets in the country.
The new framework will allow qualified issuers to create tokenized securities using blockchain technology. The updated Electronic Securities Act facilitates this process. The products will be classified as investment contract securities tradable through licensed brokerages and intermediaries.
The stated goal of regulators is to integrate the operational efficiency of distributed ledgers with established investor protection frameworks. The Financial Services Commission (FSC) indicated the reforms will improve the oversight and handling of securities accounts. They will also drive the adoption of smart contracts in market infrastructure.
The scope of tokenized securities covers various asset classes
It includes debt and equity products, without being limited to a specialized class. A government representative mentioned potential advantages for non-standard investment contracts. These contracts could be linked to real estate, art, or agricultural initiatives, sectors with historical supply chain inefficiencies.
The new law will take effect in January 2027, following a 12-month preparation period. The FSC will lead the implementation, collaborating with the Financial Supervisory Service, the Korea Securities Depository, and industry actors. A consultation group meeting is scheduled for February to establish a support infrastructure including secure ledger-based account management systems.
External analysts have projected substantial growth for this market
Boston Consulting Group estimated South Korea’s tokenized securities market could expand to nearly 367 trillion won (about $249 billion) by the end of the decade. Other global projections, like those from Standard Chartered, suggest tokenized real-world assets could reach a market value of $2 trillion by 2028.
Local financial companies have already begun preparatory work. Mirae Asset Securities and Hana Financial Group publicly announced efforts to develop platforms in anticipation of the new regulations. This regulatory move is presented as an extension of earlier FSC efforts, which had already published rules related to Security Token Offerings (STOs).
Filed under: News - @ January 16, 2026 8:28 pm