South Korea Pushes Tokenized Securities Expansion Into Bonds and Funds
South Korea's Financial Services Commission is moving to expand the tokenized securities market beyond fractional investments in real estate and art into bonds and funds. According to ChainCatcher, draft amendments to subordinate rules under the Electronic Securities Act and the Capital Markets Act were announced for public notice from the 2nd of this month to the 11th of next month, with implementation set for February 4 next year.The revisions would bring traditional securities such as stocks, bonds, and funds into the tokenization framework. In the initial phase, the regulator plans to prioritize private money funds, private bonds, and trust-based tokenized unlisted stocks for institutional investors, while also piloting public fractional investment securities. Public bonds and funds for retail investors would be expanded later, after the market stabilizes.The regulator is also considering a cap of 100 million won per exchange on annual net purchases by retail investors on over-the-counter trading platforms. In addition, non-financial firms would be allowed to directly manage investor accounts if they meet conditions including 4 billion won in self-capital.