South Korea Plans To Expand Tokenized Securities To Stocks, Bonds And Funds In 2027

South Korea’s Financial Services Commission and Financial Supervisory Service have unveiled a phased roadmap for capital market tokenization, with traditional securities such as stocks, bonds and funds set to be included in the compliant tokenization framework starting in February 2027. According to ChainCatcher, the plan would expand the legal and market scope of security token offerings beyond fractional investment products such as music royalties and real estate. The roadmap outlines three stages. The first stage, beginning in February 2027, focuses on legal revisions, including amendments to the Electronic Registration Act, rules for money market funds and bonds, and compliance measures for unlisted shares issued through trust structures. The second stage would broaden tokenization access to all publicly issued traditional securities. The third stage would build on-chain payment and settlement infrastructure linked to compliant stablecoins. The regulators also set retail investor protections, including a per-subscription cap for individual STO purchases at the lower of 30 million won or 5% of the asset’s total issuance, and an annual net purchase limit of about $74,000 for over-the-counter trading by individual investors.