South Korea includes tokenized securities in the capital market reform framework, planning to implement it officially by 2027

BlockBeats News, June 24 — The Financial Services Commission (FSC) of South Korea announced that tokenized securities infrastructure will be included in the capital market modernization reform plan. The related reforms also include shortening the securities settlement cycle, extending trading hours, and expanding the application of artificial intelligence technology.

FSC stated that a review meeting for capital market infrastructure has been launched to coordinate government departments and market institutions to promote reforms. Among them, plans related to tokenized securities will continue to be discussed separately through the Public-Private Partnership Committee and will be incorporated into the overall capital market reform framework in subsequent stages.

According to the plan, South Korea will publish a roadmap for shortening the securities settlement cycle before October this year, and by the end of 2026, the Korea Securities Depository (KSD) plans to launch a settlement system for over-the-counter trading of unlisted stocks and fragmented investment products.

The South Korean National Assembly passed relevant amendments in January this year, officially recognizing blockchain distributed ledger technology as a legal securities registration system and allowing the issuance and circulation of tokenized securities. FSC stated that once supporting regulations and infrastructure are completed, this system is expected to officially take effect in February 2027.

In terms of infrastructure development, Samsung SDS secured a contract with the Korea Securities Depository in May this year to build a tokenized securities management platform, connecting the existing electronic securities account system with blockchain data, with the goal of going live by February 2027.

Kwon Dae-young, Vice Chairman of the Financial Services Commission of South Korea, said that future capital market reforms will focus on four main goals: market trust, shareholder protection, financial innovation, and market access, aiming to create a real-time, continuously open, and highly digitalized integrated financial market.

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