South Korea has officially voted to legalize tokenized securities, giving blockchain-based assets a formal seat at the financial table. The National Assembly passed amendments to both the Capital Markets Act and the Electronic Securities Act, recognizing tokenized securities as legitimate financial instruments.
Under the new framework, eligible issuers can create tokenized securities using distributed ledger technology. These assets will be traded through licensed intermediaries like brokerages, combining blockchain efficiency with existing investor protections. The Financial Services Commission expects this to improve securities account management and expand smart contract usage across market infrastructure.
The law is scheduled to take effect in January 2027 after a one-year preparation period. This move follows the FSC's earlier STO guidelines from 2023 and comes after recent corporate crypto trading permissions.
Market projections are optimistic. Boston Consulting Group estimates South Korea's tokenized securities market could reach 367 trillion won ($249 billion) by 2030, while Standard Chartered forecasts global tokenized real-world assets hitting $2 trillion by 2028. Local financial giants like Mirae Asset Securities and Hana Financial Group have already begun building platforms in anticipation.
Meanwhile, South Korea is also tightening crypto crime controls, expanding its travel rule to cover transactions under 1 million won ($680) to prevent users from bypassing identity checks through split transfers.
