South Korea’s Ministry of Economy and Finance has confirmed that tokenized stocks are to be treated as securities rather than virtual assets, a decision that could trigger immediate taxation under existing capital markets rules. The announcement, reported on June 12, 2026, indicates that once the Financial Services Commission (FSC) releases its revised token securities guidelines in July, tax collection might begin in the second half of 2026.
Key regulatory stance: The ministry stated that tokenized stocks—digital representations of traditional equities—exhibit the economic characteristics of securities despite their blockchain issuance. If the FSC formally classifies them as securities, the Capital Markets Act will apply without the need for new legislation. This includes capital gains tax and securities transaction taxes on both domestic and overseas tokenized stock trades, provided the underlying economic rights are deemed equivalent to securities.
The move addresses a gap left by earlier guidelines. In 2023, the FSC had acknowledged that token securities fall under the Capital Markets Act but focused mainly on fractional ownership of assets like real estate and art, leaving ordinary tokenized shares in a gray area. Many market participants had expected these instruments to remain untaxed until the country’s virtual asset tax regime begins in 2027.
The global tokenized stock market has surged, reaching nearly $1.47 billion in value as of June 8, 2026, up 115% year-to-date, driven by demand for blockchain-based access to U.S. firms like Tesla and Nvidia. The growth has accelerated pressure on regulators to clarify the legal treatment of such assets.
South Korean tax authorities are also strengthening information-sharing with foreign agencies, including the U.S. IRS, to monitor overseas tokenized stock transactions. The FSC’s July guidelines are expected to remove uncertainty, potentially classifying tokens based on features like voting rights into ordinary shares, derivatives, or investment contract securities.
