South Korea approves tokenized securities framework in key legislative hearing

South Korea has taken a definitive step toward integrating digital assets into its traditional financial ecosystem following the approval of the tokenized securities framework by the National Assembly’s Political Affairs Committee (PAC). This legislative move establishes the foundational legal structure necessary for the issuance, distribution, and trading of security tokens (STOs) within the country.

The approval targets key amendments to both the Electronic Securities Act and the Capital Markets Act. Under the new guidelines, STOs will be officially categorized as regulated investment products, bringing them under the strict oversight of the Financial Services Commission (FSC). This ensures that tokenized assets adhere to the same stringent investor protection standards as conventional securities.

The framework is designed to facilitate the fractional ownership of high-value, illiquid assets, such as real estate, artwork, and intellectual property. It also aims to encourage traditional financial institutions, including brokerage firms and commercial banks, to actively participate in the digital asset market. Experts view this legislative success as a critical accelerator for innovation in South Korea’s capital market, potentially boosting liquidity and broadening investment opportunities for both institutional and retail investors.

Source: South Korea approves tokenized securities framework in key legislative hearing