South Korea Unveils Three-Phase Plan for Tokenized Securities
South Korea’s Financial Services Commission wants to launch the first phase of infrastructure for tokenized funds, bonds and selected stocks from February 2027. Settlement via stablecoins remains a later goal without a set timeline.
Tokenized securities have been included by South Korea’s Financial Services Commission (FSC) in a three-phase plan intended to gradually expand infrastructure for digitally recorded investment instruments. The policy direction was published on September 4 at the third meeting of a public-private consultative group.
The first phase is scheduled to begin on February 4, 2027, when amendments to the Electronic Securities Act and Capital Markets Act will take effect. The immediate launch will not mean opening a fully functional market for all types of tokenized assets or permitting the tokenization of all publicly traded stocks.
What the First Tokenization Phase Includes
In the initial phase, the FSC envisions the tokenization of private money market funds (MMFs) and corporate bonds intended exclusively for institutional investors. The plan also includes unlisted shares through a trust structure and publicly offered fractional investment securities.
The framework therefore expands the previous use of tokenization in fractional investments to more traditional categories of funds, bonds and selected stocks. At the same time, the regulator is basing this step on the existing securities regime and investor protection, not on a deregulated crypto market.
By the end of September, the FSC wants to submit implementing regulations for public comment. These are expected to address permitted types of securities, OTC trading and the registration of issuer account managers in particular. Their final wording will be an important factor in determining the practical scope of the first phase.
Public Offerings Only in the Next Step
The second phase is intended to expand the infrastructure to publicly offered securities. The third phase is intended to introduce on-chain settlement using stablecoins or comparable means of payment.
However, the FSC has not set a timeline for either the second or third phase. Their launch is expected to depend on the stability of the first phase, technological progress and legislation governing stablecoins. It is therefore not confirmed that stablecoins will be usable in South Korea to settle tokenized stocks or bonds as early as February 2027.
Specific technical solutions for interoperability between tokenized securities records and potential stablecoin-based payment systems also remain open. The regulator is expected to continue assessing them while preparing the later phases.
What Will Happen Before February 2027
Before the first phase begins, the readiness of the Korea Securities Depository and licensed intermediaries for the new infrastructure will be important. The FSC also plans model testing and a pilot for tokenizing listed stocks with the Korea Exchange.
The next specific step will be the publication of draft implementing regulations by the end of September 2026. Their final wording and the practical readiness of market participants before the amended laws take effect in February 2027 will then be important.
Sources
- Financial Services Commission / Korean Government Briefing – Primary confirmation of the September 4 announcement, the three-phase plan, the scope of the first phase, the conditional nature of later phases and the planned implementing regulations.
- Financial Services Commission – English confirmation of the FSC meeting and its intention to expand tokenization to stocks, bonds and funds.
- The Korea Times – Independent coverage of the timeline, limitations and conditional nature of the later phases.
Verified and updated: 09/04/2026 15:20
