South Korea's Financial Services Commission has proposed rules allowing stocks, bonds and funds to be issued as token securities on distributed ledgers, while keeping them subject to existing capital-market regulations. The framework would open with privately placed money market funds and bonds for institutional investors, trust-based tokenization of unlisted shares and publicly offered fractional investment securities. Publicly offered traditional securities would follow in a later, undated phase, with eventual on-chain payment and settlement potentially involving stablecoins. Retail investors would face a 100 million won annual net-purchase limit on each token-securities over-the-counter platform. Companies managing accounts for securities they issue would need at least 4 billion won in equity capital and specified personnel and technology controls. The proposal was presented on Oct. 1, with public comments scheduled from Oct. 2 to Nov. 11, 2026, followed by regulatory and Cabinet reviews before the framework takes effect on Feb. 4, 2027. The initiative comes as lawmakers from both ruling and opposition parties support postponing the crypto income tax regime scheduled to begin on Jan. 1. KB Securities, Kakaopay Securities, Hanwha Investment & Securities, Samsung SDS, Eugene Investment & Securities and BEATOZ are among the firms preparing related products or infrastructure.