TL;DR:
South Korea integrated token securities infrastructure into its plan to modernize its capital market. The Financial Services Commission (FSC) announced the launch of a capital market infrastructure review meeting aimed at coordinating reforms among government agencies and market operators. Associated initiatives include shortening the securities settlement cycle, extending trading hours, and broader integration of artificial intelligence.
Within that framework, South Korea’s specific plans for token securities will continue to be discussed separately through a public-private council before being formally linked to the broader review. The roadmap also includes a Korea Securities Depository (KSD) system to settle over-the-counter transactions in unlisted shares and fractional investment products, with an estimated implementation date of late 2026.
FSC Vice Chairman Kwon Dae-young noted that the initiative will be grounded in four priorities: trust, shareholder protection, innovation, and market access.
South Korea’s initiative has precedents that predate this review. In January, the National Assembly passed amendments recognizing blockchain-based distributed ledgers as valid securities records and authorizing the issuance and circulation of token securities. According to the FSC, the framework is scheduled to take effect in February 2027, once regulators complete the subordinate regulations and supporting infrastructure. The publication of proposed regulations and guidelines is expected by July.
On the technical side, infrastructure development will also see concrete progress. Samsung SDS announced it won a contract with the KSD to develop a token securities management platform that will connect the depository’s electronic securities account system with blockchain-based data. The company aims to complete the platform by February 2027, in sync with the new framework’s entry into force. According to the FSC, the ultimate goal is to build in South Korea an integrated, real-time, continuously accessible digital market.
