Tokenized Securities Scope Expanded: South Korea to Include Bonds and Funds Among First Batch of Underlying Assets

Odaily News: South Korea's Financial Services Commission is pushing to expand the tokenized securities market from fractionalized investments in real estate and artworks to bonds and funds. The amendments to the subordinate regulations under the Electronic Securities Act and the Capital Markets Act have been open for legislative notice from the 2nd of this month to the 11th of next month, and are scheduled to take effect on February 4 next year. The amendments plan to include traditional securities such as stocks, bonds, and funds within the scope of tokenization. In the initial phase, priority will be given to offering institutional investors private money market funds, private bonds, and trust-based tokenized unlisted shares, while piloting publicly offered fractionalized investment securities. Publicly offered bonds and funds for retail investors will be expanded after the market stabilizes. Regulators also plan to set an annual net purchase cap of 100 million Korean won per platform for retail investors on over-the-counter trading platforms, and to allow non-financial institutions that meet conditions such as 4 billion Korean won in own capital to directly manage investor accounts.