South Korea approves tokenized securities framework in key legislative hearing

South Korea's National Assembly passed key amendments to the Capital Markets Act and the Electronic Securities Act, establishing a legal framework for security token offerings (STOs). This legislation institutionalizes the issuance and distribution of tokenized securities using distributed ledger technology, allowing qualified issuers to launch them and enabling trading on brokerages as investment contract securities. The Financial Services Commission (FSC) anticipates this will enable better securities account management and greater use of smart contracts. The amendments define token securities broadly, benefiting non-standardized assets like real estate or art. Following presidential promulgation, the laws are expected to take effect in January 2027 after a preparation period, with the FSC leading implementation efforts. This move aligns with global growth projections for tokenized real-world assets, with local firms already advancing related platforms.

(Source：The Block)