South Korea’s FSC Sets February 2027 Start for Phased Securities Tokenization Roadmap
Key Takeaways
- 01The FSC introduced its securities tokenization and digital-transformation roadmap on 4 September 2026.
- 02The amended Electronic Registration Act takes effect on 4 February 2027, and the first phase of tokenization starts in February 2027.
- 03Phase one covers institutional MMFs and bonds, unlisted stocks via trusts, and publicly offered fractional investment securities; phase two extends to all publicly offered securities.
- 04The final phase aims at stablecoin-linked on-chain payment infrastructure, with timing dependent on phase one and pending stablecoin legislation.
- 05No separate licence is created for tokenized securities, but OTC intermediation requires prior consultation with the FSS.
South Korea’s Financial Services Commission (FSC) introduced a policy roadmap on the digital transformation and tokenization of securities issuance and circulation on 4 September 2026, at the third private-public consultative meeting on securities tokenization.
The roadmap introduces tokenization in three phases. An amendment to the Act on Electronic Registration of Stocks and Bonds takes effect on 4 February 2027 and legally recognises security tokens as a digitised form of securities, so the first phase begins in February 2027. It covers privately pooled money market funds and bonds reserved for institutional investors, unlisted stocks through a trust structure, and publicly offered fractional investment securities.
The second phase opens tokenization to all publicly offered securities, and the final phase aims to establish on-chain payment infrastructure linked to stablecoins. The FSC says the timing of the later phases will depend on the first phase, the pace of technological change and pending stablecoin legislation.
Existing financial investment business licences will cover tokenized securities within their licensed scope, without a separate authorisation, but intermediating over-the-counter tokenized securities trades will require prior consultation with the Financial Supervisory Service. Market participants should watch for the detailed rules and technical standards that follow.