South Korea Unveils Three-Phase Blockchain Roadmap for Tokenized Securities

On September 4, the Financial Services Commission (FSC) of South Korea unveiled a three-stage plan to incorporate blockchain technology into conventional securities markets, commencing on February 4, 2027. The initial stage will involve modifying the Act on Electronic Registration of Stocks and Bonds to accept tokenized securities, starting with privately pooled money market funds, institutional bonds, unlisted stocks, and fractional investment securities. The second stage will broaden tokenization to encompass all publicly offered securities, while the third stage will create a payment system on the blockchain linked to stablecoins. The FSC established model standards for fractional investments, limiting subscriptions to 30 million won (~$22,000) and OTC transactions to 100 million won (~$74,000). Financial institutions are required to maintain 4 billion won (~$2.9 million) in equity. The Korea Securities Depository is working on technical standards, with proposed rule changes expected by the end of September.