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The National Assembly of South Korea at a plenary session approved amendments to two laws – on capital markets and on electronic securities. These changes create the legal basis for the issuance and trading of tokenized securities using the blockchain.
After parliamentary approval, the bills will be sent to the State Council and then to the president for signing. The laws are scheduled to enter into force in January 2027, after a one-year preparatory period.
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If the amendments are fully adopted, South Korean legislation will allow professional issuers to issue tokenized securities, as well as trade them as investment contracts through brokers and other intermediaries. The new legal regime applies to all types of securities, including debt and equity instruments.
Tokenized assets can also be used for non-standard investment contracts – for example, related to real estate, art or livestock projects. Previously, their distribution in South Korea was significantly limited.
The implementation of the new standards will be carried out by the Financial Service of South Korea (FSC). It will form an advisory body that will include representatives from the Financial Supervisory Service, the Korea Securities Depository, the Financial Investment Association, as well as market participants and experts. A kick-off meeting is planned for next month. Its goal is to develop a supporting infrastructure, including a distributed ledger-based accounting system and enhanced security measures.
Standard Chartered estimates that the market capitalization of tokenized assets excluding stablecoins could grow to $2 trillion by 2028. For comparison, at the end of 2025, this figure was $35 billion. Boston Consulting Group, in turn, predicts that the South Korean tokenized securities market will reach 367 trillion won (about $249 billion) by the end of this decade. Major local players, including Mirae Asset Securities and Hana Financial Group, are already preparing to issue their first tokens.
South Korea continues to work on a basic digital asset law. The project plans to establish rules for a number of important areas, including stablecoins pegged to the won, as well as the country’s first spot crypto ETFs. It is expected that the final version of the law will be presented in the first quarter of this year. However, the preparation of the law is difficult, since the country’s regulatory authorities cannot agree on the key parameters for the issuance of stablecoins.
