FSC Opens Public Comment on Tokenization Framework South Korea's Financial Services Commission (FSC) has published draft rules that would allow stocks, bonds, funds, and certain fractional in
South Korea's Financial Services Commission (FSC) has published draft rules that would allow stocks, bonds, funds, and certain fractional investment securities to be issued and traded in tokenized form. The draft regulations are open for comments until November 11 and are scheduled to come into force on February 4, 2027, subject to FSC resolution, legislative review, and cabinet approval.
The proposals revise lower-level regulations under two laws: the Financial Investment Services and Capital Markets Act and the Act on Electronic Registration of Stocks and Bonds, both of which were already revised to allow tokenized securities. The new rules set out the operational details needed to put that change into practice.
The FSC outlined a 4 billion KRW capital threshold for issuers who manage customer accounts directly. Separate changes to capital markets rules would create an additional over-the-counter exchange license for debt securities, and retail investors would be limited to 100 million won (roughly $70,000) in annual net purchases on each OTC exchange.
Phase one covers legal recognition for tokenized versions of selected instruments, including certain funds and bonds, along with unlisted stocks and fractional investment securities. Phase two would broaden tokenization to all publicly offered securities, while phase three targets onchain payment flows linked to stablecoins.
A key technical requirement under the draft rules is the mandatory involvement of the Korea Securities Depository in any distributed ledger used for tokenized securities. Ledgers must be shared among at least two account management entities alongside the Korea Securities Depository, while direct fees for using the distributed ledger will be prohibited.
The Korea Securities Depository is developing tokenized-securities infrastructure capable of connecting with Hyperledger Besu, Hyperledger Fabric, and @avax, according to the Seoul Economic Daily.Participation in its system is limited to electronic-registration institutions and account-management institutions.
South Korean financial firms are already positioning ahead of the 2027 deadline. Hanwha Investment & Securities began developing a tokenized securities platform with blockchain technology firm FairSquare Lab in 2025, building the system to operate across multiple networks, including Avalanche and enterprise Ethereum client Hyperledger Besu.Several other South Korean financial firms have already used enterprise networks such as Hyperledger Besu for token securities infrastructure, while Hanwha's system extends that approach to @avax, where institutions can establish dedicated networks with controls over participation and validators.
The framework represents one of the most detailed regulatory blueprints for onchain capital markets among major Asian economies, with the FSC moving from broad legislative recognition to granular implementation rules ahead of its February 2027 target.
Sources:Ledger Insights: Korea's Financial Services Commission publishes draft tokenization rulesCrypto Times: South Korea's Hanwha Builds Avalanche-Based Tokenized Securities PlatformCrypto News: Hanwha taps Avalanche for tokenized securities platform in South Korea
