South Korea's Capital Market Transformation, Will My Stocks and Bonds Also Become Tokens by 2027?

▲ Crypto (Cryptocurrency) ©CoinReaders

South Korean financial authorities have finalized an institutional blueprint to bring not only stocks and bonds but also fractional investment products onto the blockchain, signaling a major transformation in the capital market.

According to investment media FXStreet on October 2 (local time), South Korea's Financial Services Commission (FSC) has announced detailed regulatory proposals governing the issuance and distribution of Tokenized Securities, ahead of the full implementation of the system in February 2027. Under this system overhaul, a legal foundation will be established for stocks, bonds, funds, and even specific Fractional Investment Securities to be issued and distributed in token form based on a distributed ledger.

Entry barriers for companies issuing and managing these tokens have also been concretized. Companies that wish to directly manage customer accounts and issue tokenized securities must secure a minimum of $2.8 million in equity capital and are required to have dedicated compliance personnel and technical staff.

Furthermore, through the revision of capital market regulations, authorization for Over-The-Counter (OTC) Exchanges for debt securities will be newly established. To prevent excessive investment by general individual investors, the annual net purchase limit per OTC exchange will be capped at $70,000.

This measure is a follow-up to the three-stage roadmap for introducing distributed ledger infrastructure for securities issuance and distribution, which was unveiled on September 4. The relevant regulations will undergo a public comment period until November 11, followed by an approval process, and are scheduled to be fully implemented on February 4, 2027, along with amendments that recognize distributed ledgers as formal securities infrastructure.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.*