South Korea establishes legal framework for tokenised securities
Analysts project tokenised real-world assets could reach $2 trillion globally by 2028, with South Korea’s market alone potentially hitting $249 billion.
South Korea has approved legislation establishing a legal framework for issuing and trading tokenised securities. Amendments recognise blockchain-based securities as legitimate, with rules taking effect in January 2027.
Eligible issuers can create tokenised debt and equity products using blockchain infrastructure, while brokerages and licensed intermediaries will facilitate trading.
Regulators aim to combine the efficiency of distributed ledgers with investor protections and expand the use of smart contracts, enabling previously restricted investments in real estate, art, or agriculture to reach a broader audience.
Implementation will be led by the Financial Services Commission, in collaboration with the Financial Supervisory Service, the Korea Securities Depository, and industry participants.
Consultation bodies will develop infrastructure such as ledger-based account management systems, while local firms, including Mirae Asset Securities and Hana Financial Group, are preparing platforms for the new rules.
Analysts project tokenised assets could reach $2 trillion globally by 2028, with South Korea’s market at $249 billion.
The legislation also complements South Korea’s efforts to regulate blockchain and curb cryptocurrency-related financial crime.
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