South Korea’s financial regulator is weaving token securities into a larger overhaul of the country’s capital markets. The Financial Services Commission (FSC) announced Tuesday that it’s coordinating reforms across government agencies and market operators, with token securities infrastructure sitting alongside plans for faster settlement, extended trading hours, and greater use of AI.
The FSC said token securities will be discussed further through a public-private council before being formally linked to the wider initiative. A roadmap for shortening the securities settlement cycle is expected by October, and the Korea Securities Depository plans to have a system for settling over-the-counter trades in unlisted shares and fractional investment products ready by the end of 2026.
This positions tokenized securities within South Korea’s broader push to modernize traditional financial markets. The move could bring blockchain-based investment products closer to the systems used for mainstream securities settlement and trading.
FSC Vice Chairman Kwon Dae-young framed the effort around four policy priorities: trust, shareholder protection, innovation, and market access.
South Korea’s token securities framework was approved by the National Assembly in January, recognizing blockchain-based distributed ledgers as valid securities registries. The framework is scheduled to take effect in February 2027. At a May meeting, the FSC said it was targeting July for proposed subordinate regulations and guidelines.
Samsung SDS won a contract from the KSD in May to build a token securities management platform connecting the depository’s existing electronic securities account system to blockchain-based data. The company aims to complete it by February 2027.
