South Korea will implement a regulatory framework for blockchain-based issuance and trading of securities on February 4, 2027, following the Financial Services Commission's proposed revisions covering securities issued and traded using distributed ledger technology. Announced on October 1, 2026, the rules would apply under the Financial Investment Services and Capital Markets Act and the Electronic Registration Act, allowing stocks, bonds, funds and certain fractional investment securities to be issued and circulated in tokenized form. The Korea Securities Depository will link traditional financial infrastructure with the blockchain-based system. Public comments are scheduled from October 2 to November 11, 2026, ahead of the framework's effective date and required approval process. Tokenized securities would be recorded on distributed ledgers alongside existing registration infrastructure, with ledgers shared among at least two account-management entities, including issuer account-management entities, alongside the Korea Securities Depository. Direct fees for ledger use would be prohibited. Issuers that also manage customers' securities accounts would need at least 4 billion won, or about $2.9 million at current prices, in equity capital and four designated professionals covering account management, internal controls and information technology. The FSC also plans a new over-the-counter licensing category for debt securities, with retail investors facing an annual net purchase limit of 100 million won on each OTC exchange. Separately, the government plans a 2027 pilot involving tokenized government bonds and the Bank of Korea's wholesale CBDC infrastructure, although participating institutions, bonds and blockchain infrastructure remain undecided. Financial firms including Shinhan Asset Management, Hanwha Investment & Securities, the Korea Securities Depository, Securitize, KB Securities, Kakao Pay Securities and their partners are developing or exploring related platforms and products. The FSC said it will continue consulting market participants before finalizing the rules.