South Korea's Financial Services Commission (FSC) published its token securities policy direction on 4 September 2026, following the third meeting of the public-private joint Token Securities Consultation Body. This is a policy direction at the consultation and pre-legislative stage, not a final rule. It sets out the FSC's regulatory approach to the issuance, custody, and settlement of security tokens, and establishes the timetable for infrastructure development ahead of the planned amendment to the Act on Electronic Registration of Stocks and Bonds (Act No. 15791) scheduled to take effect on 4 February 2027.
The planned amendment to the Act on Electronic Registration of Stocks and Bonds, scheduled to take effect on 4 February 2027, would legally recognise security tokens as a digitised form of conventional securities, extending the existing electronic registration regime to on-chain instruments. The three-phase infrastructure roadmap requires Korean securities companies and the Korea Securities Depository to develop progressive on-chain issuance, custody, and settlement capabilities, with the ultimate goal of a fully on-chain payment and settlement system. The FSC confirmed that tokenisation will extend to conventional instruments including stocks, bonds, and funds, not only to fractional investment products.
Korean securities companies must prepare their technology and compliance infrastructure for the three phases outlined in the roadmap without waiting for the February 2027 legislative amendment, as the FSC indicated that infrastructure development is intended to precede the statutory changes. The Korea Securities Depository must build systems capable of supporting on-chain registration and settlement functions compatible with the amended Act. Foreign financial institutions seeking access to Korea's tokenised securities market must assess licensing requirements under the Financial Investment Services and Capital Markets Act, as the existing regime does not automatically accommodate on-chain security structures.
The policy direction does not yet specify technical standards for on-chain settlement systems; these will be addressed in subsequent phases of the consultation. The narrow window between the September 2026 policy direction and the February 2027 legislative commencement creates execution pressure for infrastructure projects requiring regulatory pre-approval. Unresolved questions include how the Korean Anti-Money Laundering Act and securities disclosure obligations will apply to security tokens issued on public blockchains versus permissioned enterprise networks.
Licentium advises financial institutions, token issuers, and digital asset platforms on securities tokenisation regulations across Asia-Pacific and Europe. We may advise on the implications of the South Korean token securities roadmap for your issuance or infrastructure strategy, and can connect you with Korean regulatory specialists through our partner network. Work we undertake includes token securities legal analysis, Financial Investment Services and Capital Markets Act licensing assessment, regulatory mapping for digital asset structures, infrastructure compliance review, and strategic advisory on engagement with the FSC and other Asian financial regulators.