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South Korea’s Financial Services Commission has launched a capital market infrastructure taskforce that folds token securities into a wider settlement, trading and digital finance reform agenda.
The taskforce was launched on June 23 and puts blockchain, AI and settlement-cycle reform inside the same capital-market plan.
October Roadmap Targets Shorter Settlement
The taskforce will examine how South Korea’s securities market infrastructure can handle faster trading, shorter settlement cycles and new digital finance tools. FSC Vice Chairman Kwon Dae-young said the work will focus on trust, shareholder protection, innovation and market access.
Regulators want a roadmap for shortening the securities settlement period as early as October. The Korea Exchange also plans to extend market access through an after-market from September 14. A pre-market session could follow from the end of 2027.
January Amendments Created Legal Path
South Korea’s token securities plan predates the latest taskforce. In January, the National Assembly passed amendments to the Electronic Registration Act and the Financial Investment Services and Capital Markets Act.
Those changes recognize blockchain-based distributed ledgers as securities registries. They are intended to give token securities a legal foundation for issuance and circulation under existing capital market law.
The rules are scheduled to take effect on February 4, 2027, after subordinate regulations and market infrastructure are prepared.
March Group Works on Issuance Rules
The FSC launched a public-private consultative body for token securities in March. The group is working on rules for issuance, circulation, disclosure, technology and settlement.
It includes regulators, the Financial Supervisory Service, the Korea Securities Depository, the Korea Financial Investment Association, market participants and outside experts. Its work is meant to decide how tokenized securities will be issued, recorded, traded and supervised before the new legal framework takes effect.
Token Securities Stay Under Capital Law
Token securities are being treated as securities, not as a separate class of virtual assets. That means issuers and intermediaries will need to follow registration, disclosure, brokerage and investor protection rules under capital market law.
Expected early use cases include fractional investment products, trust beneficiary certificates and investment contract securities tied to assets such as art, livestock or real estate.
2027 Launch Depends on Market Infrastructure
The practical test is whether regulators can build account, registry and settlement rules before the 2027 start date. South Korea already has the legal direction for token securities.
The new taskforce is aimed at preparing the systems and market structure needed to move those products from approval into actual securities-market use.
