South Korea proposes tokenized securities rules for 2027 rollout

Under the proposed changes, entities that issue tokenized securities while directly managing client accounts will be required to possess at least 4 billion Korean won ($2.8 million) in equity capital. These firms will also need dedicated compliance and technology personnel. Additionally, amendments to capital markets regulations will introduce a new over-the-counter (OTC) exchange license specifically for debt securities. Retail investors will face an annual net purchase cap of 100 million won ($70,000) on each OTC exchange.

These proposals build upon a phased roadmap announced on September 4, which outlines the integration of distributed ledger technology into securities issuance and trading. The public consultation period for the rules will run from Friday until November 11, followed by an approval process. The regulations are expected to be implemented on February 4, 2027, coinciding with legal amendments that recognize distributed ledgers as valid infrastructure for securities.