South Korea adds token securities to capital market overhaul
RWA Signal Insight
InfrastructureSouth Korea’s Financial Services Commission (FSC) has integrated token securities infrastructure into a comprehensive capital-market modernization strategy aimed at enhancing digital transformation and market efficiency. This initiative aligns blockchain-based asset development with broader reforms, including shortened settlement cycles and extended trading hours. The FSC is coordinating these efforts through a public-private council to ensure tokenized assets are seamlessly linked to mainstream financial systems. Legislative progress is already underway, following January amendments by the National Assembly that officially recognize distributed ledgers as valid securities registries. Samsung SDS has been contracted by the Korea Securities Depository (KSD) to develop a management platform connecting traditional electronic accounts to blockchain data by February 2027. This timeline coincides with the official framework implementation, which will follow the release of subordinate regulations expected in July. By embedding tokenization into national infrastructure, South Korea is positioning itself to create a real-time, integrated digital market that prioritizes investor protection and innovation.
Key points
- FSC integrated token securities into a national capital-market modernization and digital transformation roadmap.
- National Assembly approved blockchain-based distributed ledgers as valid securities registries in January.
- Samsung SDS is building a KSD-contracted platform to connect electronic accounts to blockchain by 2027.
- New regulatory framework for token securities is scheduled to take effect in February 2027.
Background
The Financial Services Commission (FSC) is the primary government agency in South Korea responsible for financial policy and the supervision of financial institutions. Token securities, often referred to as security tokens, represent digital claims on underlying assets—such as real estate or fractional investments—recorded on a blockchain. By formalizing these assets, the FSC aims to bring transparency and regulatory oversight to digital investment products.