On September 4th, South Korea's Financial Services Commission (FSC) held its third public-private joint consultation meeting on tokenized securities and unveiled a three-phase roadmap. The amendments to the "Electronic Securities Act" and the "Capital Market Act," passed on January 15, 2026, will officially take effect on February 4, 2027. At that time, South Korea will become the first major economy globally to explicitly define the legal status, asset categories, and infrastructure development timeline for securities tokenization through dedicated legislation.
The core principle of this roadmap is stated in the first paragraph: tokenized securities are recognized as the third form of issuance alongside paper securities and electronic securities, and they are subject to existing securities registration, information disclosure, and intermediary licensing regulations.
This signifies South Korea's choice to integrate tokenization into the existing securities law framework rather than creating a new regulatory sandbox for it.
Phase One: February 2027, Starting with Institutions and the Unlisted Market
The first phase will commence simultaneously with the enforcement of the amended laws. The asset categories to be opened have been carefully selected.
Regarding funds, private money market funds (Private MMF) dedicated to institutional investors will be opened first. For bonds, private corporate bonds will be opened. For equities, the entry point will be unlisted shares, utilizing a structure of trust beneficiary securities—the shares remain in the existing registration system, and investors receive tokenized trust interest certificates. Publicly offered fractional investment products are also included in the first batch.
Several supporting details are noteworthy.
Licensed securities companies and dealers can directly handle tokenized securities without requiring additional licenses. Non-financial institutions wishing to operate accounts for investors in their own tokenized securities must have a minimum paid-in capital of at least 40 billion won (approximately $3 million) and employ dedicated personnel for account management, compliance, and IT. OTC trading platforms must first obtain consultation approval from the Financial Supervisory Service. The annual net purchase limit for retail investors on OTC platforms is 100 million won (approximately $74,000). For fractional products, the single subscription limit is 30 million won (approximately $22,000) or 5% of the total issuance, whichever is lower.
The Korea Securities Depository (KSD) is finalizing technical acceptance standards for securities companies to connect to the shared ledger. The FSC plans to release a draft of the revised subordinate legislation by the end of September for public consultation.
Phase Two: Expanding to Publicly Issued Securities
The FSC has not set a specific date for the second phase. The advancement timeline depends on four variables: the system stability and operational efficiency of Phase One, the technical maturity of market participants, interoperability capabilities among different distributed ledgers, and progress in South Korea's stablecoin-related legislation.
The core expansion of this phase involves extending tokenization from the private market to publicly issued securities. The FSC also plans to refer to the tokenization pilot experiences of the New York Stock Exchange and NASDAQ, with the Korea Exchange (KRX) leading the promotion of model verification and pilot projects for tokenizing listed stocks.
Phase Three: Introducing Stablecoins for On-Chain Settlement
The goal of the final phase is to establish on-chain settlement infrastructure, enabling the simultaneous completion of trading and fund settlement for tokenized securities on the same ledger, with stablecoins as the settlement instrument. The FSC cited BlackRock's BUIDL tokenized fund and Hong Kong's tokenized green bond as reference cases in the roadmap.
South Korea's stablecoin legislation is being advanced separately. The currently discussed proposal requires stablecoin issuers to hold a minimum capital of at least 50 billion won (approximately $3.7 million). The launch of Phase Three is contingent upon the establishment of the stablecoin legal framework.
Two Paths: Robinhood Runs First, South Korea Builds First
Placing South Korea's roadmap in the global context of this week reveals a stark contrast.
On the same day the FSC announced its roadmap, AMC Entertainment's CEO Adam Aron publicly criticized Robinhood's tokenization of AMC stock as "despicable," as meme coin traders on the Robinhood Chain had already driven the price of AMC's tokenized stock from above $2 to over $100.
Robinhood's model is: first wrap stocks in debt securities, place them on a permissionless blockchain to gain trading volume and users, and leave the legal implications for the market to digest.
South Korea is taking a path in the opposite direction. First, confirm the legal status of tokenized securities through legislation, then build custody and clearing infrastructure through the KSD, start with the institutional market and private products, verify system stability before gradually expanding to public securities, and only introduce on-chain settlement after stablecoin legislation is complete. Each step has clear preconditions and regulatory milestones.
Both paths come with costs. Robinhood gained speed and scale, reaching approximately $88 million in on-chain tokenized assets within two months and DEX daily trading volume exceeding $1.5 billion. However, it also garnered CEO feuds, potential SEC scrutiny, and a fundamental question: What is the legitimacy basis of this market when the tokenized company itself does not agree?
South Korea's path is almost certain not to produce "AMC-style" dramatic scenes. Its cost is speed: it takes a year from law passage to enforcement, Phase One only opens private products, and the timeline for public securities and on-chain settlement is completely undetermined. Boston Consulting Group estimates that South Korea's tokenized securities market could reach 367 trillion won (approximately $249 billion) by 2030, but this figure depends on how quickly Phases Two and Three can be implemented.
Within the same week, two extreme models of global securities tokenization emerged: one derailed its own brand by moving too fast, and the other risks missing the market window by being too cautious. The ultimately winning path will likely be a hybrid model: build infrastructure first, then gradually open access under regulation, while preserving DeFi composability. The EU's DLT Pilot Regime is exploring this direction, and Japan also announced a national blockchain settlement infrastructure plan for the early 2030s last week.
The race has just begun, but the shape of the track is becoming clear.
