South Korea’s Financial Services Commission has proposed detailed subordinate regulations for bringing tokenized securities into regulated capital markets from Feb. 4, 2027. The framework would cover stocks, bonds, investment funds and certain fractional investment products, treating them as regulated securities rather than a separate crypto-asset category. Companies issuing tokenized securities while directly managing customer accounts would need at least 4 billion won in equity capital, or about $3 million, plus dedicated account-management, internal-control and technology staff. Firms that do not meet those requirements could issue tokens through qualified financial intermediaries. Distributed ledgers would have to be shared by at least two account-management entities and the Korea Securities Depository, while operators could not charge users directly for ledger access. A new over-the-counter exchange license for debt securities is also proposed, with retail investors limited to 100 million won in annual net purchases on each licensed OTC exchange. The consultation period runs from Oct. 2 through Nov. 11, followed by Financial Services Commission approval, review by the Ministry of Government Legislation and Cabinet deliberation. The first phase would initially cover selected institutional and fractional-investment products, with broader public offerings and potential stablecoin-linked settlement considered for later stages. South Korea’s listed stock market capitalization has reached $4.89 trillion in 2026, according to Vantage Markets, highlighting the scale of the market that could eventually use tokenized infrastructure.