South Korea Passes Laws to Legalize Tokenized Securities, Sets 2027 Start Date

Overview

• South Korea’s National Assembly approved amendments on January 15 to the Capital Markets Act and Electronic Securities Act, with State Council review and presidential promulgation to follow before a January 2027 effective date.
• The revised Electronic Securities Act recognizes distributed ledgers as legally valid securities account books for issuing and recording ownership of securities.
• Changes to the Capital Markets Act allow investment contract securities to be traded through licensed brokerages and other intermediaries, bar issuers from running trading venues, and deem unlicensed platforms illegal.
• The framework covers both standardized and non‑standardized products, enabling tokenization of assets such as real estate, art, and livestock to broaden SME financing and fractional investment access.
• The Financial Services Commission will lead implementation through a Token Securities Council with the FSS, KSD, and industry participants to build market infrastructure and investor safeguards during the preparation period.