South Korea · Tokenization · Hong Kong · The Block
South Korea to start tokenizing ‘all types’ of securities in three stages from 2027
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South Korea's top financial regulator said on Friday that it will build a tokenization infrastructure that can be applied to "all types" of securities, including stocks, bonds, and funds.
Key facts
- However, over-the-counter exchanges must consult the Financial Supervisory Service first, and retail investors on such platforms are subject to an annual net-purchase limit of 100 million won
- The FSC cited BlackRock's BUIDL tokenized fund and Hong Kong's tokenized green bonds as key references
- The Financial Services Commission said the government has established a three-step plan to establish the infrastructure
- The FSC also set registration rules for non-bank issuers that want to run investor accounts for their own token securities
Summary
The announcement followed the third meeting of a consultative body on tokenized securities that took place on the same day. The Financial Services Commission said the government has established a three-step plan to establish the infrastructure. The first stage revolves around the securities token law taking effect in February. Tokenization of equities would begin with unlisted shares being tokenized through a trust, where the shares would stay on the existing system, and investors would receive a tokenized trust-beneficiary security.