South Korea’s Financial Services Commission (FSC), the country’s top financial regulator, said it would be difficult to regard the overseas issuance and sale of tokenized securities backed by domestic money market funds, or MMFs, as a violation of the current Electronic Securities Act. The interpretation applies to a structure in which a Korean MMF is bought by an offshore institution, placed in an offshore fund and represented by blockchain tokens sold through private placements to overseas investors. Korean residents must be prevented from buying or reselling the tokens through technical and contractual controls. The view reduces uncertainty before amendments governing distributed ledgers take effect in February 2027, but it is not approval for a product launch and does not automatically cover bonds, ETFs or real estate. Korean asset managers would earn management fees on the capital invested in their MMFs rather than token-issuance fees. With fees typically below 0.1% a year, or less than 10 basis points, the immediate earnings effect may be limited. The larger opportunity is a new distribution channel for overseas on-chain capital. Tokenized MMFs may attract digital-asset demand because they offer interest income and lower credit risk than stablecoins, although market growth will depend on overseas appetite for won-denominated assets and the cost of currency hedging. The decision also suggests a possible two-track market: closed domestic infrastructure for Korean investors and overseas circulation of won assets on public blockchains.