South Korea Passes Tokenized Securities Law With 2027 Start Date

Overview

• The National Assembly approved amendments to the Electronic Securities Act and Capital Markets Act to formally integrate blockchain-recorded securities into regulated markets.
• Tokenized assets are classified as investment contract securities, enabling issuance on distributed ledgers and trading through licensed brokerages and other regulated intermediaries.
• The package now moves to the State Council and presidential promulgation and is scheduled to take effect in January 2027 following a one-year preparation period overseen by the Financial Services Commission.
• Authorities describe tokenization as a way to modernize issuance, settlement, and post-trade workflows within existing market infrastructure rather than replace it.
• Policymakers say the framework will expand funding options for SMEs and non-standard assets such as real estate, art, and livestock, complementing broader early-2026 measures that include plans for spot crypto ETFs.