On September 4, the Financial Services Commission (FSC) of Korea held the third joint agreement meeting on public and private tokenized securities, unveiling a three-phase roadmap. The amendments to the Electronic Securities Act and the Capital Markets Act, passed on January 15, 2026, will officially take effect on February 4, 2027, at which point Korea will become the first major economy in the world to clarify the legal status of tokenization of securities, asset classification, and the timeline for infrastructure development through dedicated legislation.

The core principle of this roadmap is stated in the first paragraph: tokenized securities are the third form of issuance alongside paper securities and electronic securities, subject to existing regulations on securities registration, information disclosure, and intermediary licensing.

This means that Korea has chosen to integrate tokenization into the existing securities legal framework, rather than creating a new regulatory sandbox for it.

Phase One: Starting from Institutional and Non-Public Markets in February 2027

The first phase will launch simultaneously with the effectiveness of the amended laws, and the open asset classes have been meticulously selected.

In terms of funds, it will first allow private money market funds (Private MMF) specifically for institutional investors. For bonds, private corporate bonds will be opened. In terms of stocks, it will start with non-listed equity, utilizing the structure of trust beneficiary securities — shares will remain in the existing registration system, and investors will receive tokenized trust rights certificates. Fragmented investment products already issued to the public will also be included in the first batch.

Several supporting details are worth noting.

Licensed securities firms and traders can directly handle tokenized securities without needing additional licenses. Non-financial institutions that wish to operate investor accounts for their own tokenized securities must have a minimum paid-in capital of at least 4 billion KRW (approximately 3 million USD), along with dedicated personnel for account management, compliance, and IT. OTC trading platforms must first obtain consultation approval from the Financial Supervisory Service. The annual net purchase limit for retail investors on OTC platforms is 100 million KRW (approximately 74,000 USD). The subscription limit for fragmented products is capped at 30 million KRW (approximately 22,000 USD) or 5% of the total issuance, whichever is lower.

The Korea Securities Depository (KSD) is completing the technical acceptance criteria for securities firms to access shared ledgers. The FSC plans to release a draft for lower law amendments and seek public feedback by the end of September.

Phase Two: Expanding to Publicly Issued Securities

The FSC has not set a specific date for the second phase. The advancement will depend on four variables: the stability and operational efficiency of the first phase system, the technological maturity of market participants, the interoperability between different distributed ledgers, and the progress of legislative measures related to stablecoins in Korea.

The core expansion of this phase is to extend tokenization from private markets to publicly issued securities. The FSC simultaneously plans to reference the tokenization pilot experiences of the New York Stock Exchange and NASDAQ, leading the Korean Exchange (KRX) to validate the tokenization model for listed stocks and conduct pilot projects.

Phase Three: Introducing Stablecoins for On-Chain Settlement

The goal of the final phase is to establish on-chain settlement infrastructure, allowing the trading and settlement of tokenized securities to be completed synchronously on the same ledger, with stablecoins as the settlement tool. The FSC references BlackRock's BUIDL tokenization fund and Hong Kong's tokenized green bonds as case studies in the roadmap.

Korea's stablecoin legislation is progressing separately, and the current proposal in discussion requires stablecoin issuers to hold at least 5 billion KRW (approximately 3.7 million USD) in minimum capital. The prerequisite for the launch of the third phase is the establishment of a legal framework for stablecoins.

Two Routes: Robinhood Rushes Ahead, Korea Builds First

When looking at Korea's roadmap in the context of the global landscape this week, the contrast is stark.

On the very day the FSC announced the roadmap, AMC Entertainment's CEO Adam Aron publicly criticized Robinhood's action of tokenizing AMC stock as "despicable," as traders of meme coins on the Robinhood Chain have already inflated the price of tokenized AMC shares from 2 USD to over 100 USD.

The Robinhood model is: first wrap stocks in debt securities, place them on an unlicensed blockchain, achieve trading volume and users, leaving the legal relationships for the market to digest.

Korea is taking a completely opposite route. First, it confirms the legal status of tokenized securities through legislation, then KSD builds custody and clearing infrastructure, starting from the institutional market and private products. It will gradually expand to public securities only after validating system stability, and will introduce on-chain settlement only after stablecoin legislation is complete. Each step has clear prerequisites and regulatory checkpoints.

Each route comes with its costs. Robinhood has gained speed and scale, with on-chain tokenized assets reaching approximately 88 million USD within two months, and daily trading volume on DEX exceeding 1.5 billion USD. However, it has also faced conflicts among CEOs, potential SEC scrutiny, and a fundamental question: what is the legitimacy of this market when the tokenized company itself does not agree?

Korea's route is almost certain to not produce "AMC-style" dramatic scenarios. Its cost is speed: it takes a year from law passage to effectiveness, the first phase is only open to private products, and the timetable for public securities and on-chain settlement remains completely uncertain. Boston Consulting Group estimates that Korea's tokenized securities market could reach 367 trillion KRW (approximately 249 billion USD) by 2030, but this figure depends on how quickly the second and third phases can be realized.

In the same week, two extreme examples of global securities tokenization emerged: one was damaged by its own users due to rushing too fast, and the other may miss the market window by moving too cautiously. The likely winning route will be a hybrid model: first build infrastructure, then gradually open permissions while retaining DeFi compatibility. The EU's DLT Pilot Regime is exploring this direction, and Japan also announced a national blockchain settlement infrastructure plan aimed at the early 2030s last week.

The race has just begun, but the shape of the track is becoming clear.