South Korea Pushes Token Securities Into Wider Market Reform Plan

TLDR

• South Korea’s FSC added token securities to a wider capital market infrastructure overhaul.
• The review also covers faster settlement, longer trading hours, and greater use of artificial intelligence.
• The FSC will discuss token securities separately through a public-private council.
• A settlement roadmap for securities markets is expected by October.
• KSD plans an OTC settlement system for unlisted shares and fractional products by end-2026.

South Korea moved token securities into a capital market reform plan on Tuesday. The Financial Services Commission said the review covers settlement, trading access, and market technology. The plan links digital securities with reforms across agencies and market operators.

South Korea Sets Token Securities Review Under Market Reform

The FSC launched a capital market review meeting to align policy changes across the financial system. The regulator said it will handle token securities through a separate council.

That council will discuss details before the FSC links the program to the reform plan. The process gives regulators, market operators, and firms a route for coordination.

The review includes a settlement roadmap that the FSC expects to release by October. The plan will cover steps to shorten the securities settlement cycle.

The Korea Securities Depository plans a system for over-the-counter settlement by the end of 2026. That system will cover unlisted shares and fractional investment products.

FSC Vice Chairman Kwon Dae-young said the reform push will follow four policy priorities. He named them as “trust, shareholder protection, innovation and market access.”

The FSC said the project covers longer trading hours and greater use of artificial intelligence. It aims to connect these changes with market infrastructure upgrades.

Rules And Systems Move Toward 2027 Launch

South Korea started its token securities plan before the latest capital market review. In January, the National Assembly approved amendments covering blockchain-based distributed ledgers.

The amendments recognize distributed ledgers as valid securities registries. They allow the issuance and circulation of token securities.

The FSC said the framework will take effect in February 2027. Regulators must complete subordinate rules and supporting infrastructure before that date.

At its second public-private token securities council meeting in May, the FSC set another target. It planned to release proposed subordinate regulations and guidelines in July.

Technical work has moved through the KSD. Samsung SDS said in May that it won a KSD contract for a securities platform.

The platform will connect KSD’s electronic securities account system with blockchain-based data. Samsung SDS aims to complete the project by February 2027.

The FSC said the council will continue detailed talks on token securities. It will then link the work to the capital market review.

The review forms part of preparations for a real-time and continuously accessible digital market. The latest update places token securities within that market overhaul.

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