South Korea’s Financial Services Commission (FSC) will announce comprehensive regulations and operational guidelines for security tokens in July, moving closer to a formal framework that takes effect in February 2026. The rules will enable fractional investment securities backed by pooled underlying assets, allowing investors to gain exposure to diversified portfolios via a single token.
The guidelines, developed through the public-private Tokenised Securities Council, will cover issuance standards, custody requirements, disclosure obligations, and investor protection. They also include a roadmap for tokenizing traditional assets like equities and bonds, and expanding over-the-counter (OTC) trading limits for both institutional and retail participants. The council is focused on technical infrastructure, distribution, settlement, and the stability of secondary markets.
Security tokens are digital securities issued on distributed ledger technology, functioning similarly to stocks or bonds but with faster settlement and greater transparency. Under the new rules, they will be traded through licensed securities firms, placing them within the existing regulatory perimeter. The FSC aims to lower entry barriers for asset classes such as real estate, infrastructure, and art by enabling fractional ownership.
South Korea joins other jurisdictions like Singapore, Japan, and the EU in crafting dedicated tokenized securities regimes. The July announcement will give the industry several months to prepare compliance frameworks before the February 2026 enforcement date. The FSC has been working on the legal basis since 2023, and the forthcoming guidelines are expected to reduce legal uncertainty, encourage innovation, and attract new financial products. The council’s next meeting will confirm technical requirements to ensure blockchain infrastructure integrity.
