# South Korea Plans to Expand Tokenized Securities Framework to Bonds and Funds

- URL: https://stocks.freetheai.org/news/south-korea-plans-to-expand-tokenized-securities-framework-to-bonds-and-funds-342729
- Published: 2026-10-12T02:03:56Z
- Category: regulation; sentiment: neutral; impact: medium
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Financial regulators in South Korea are broadening the national tokenized securities framework beyond real estate and artwork to cover mainstream assets, including stocks, bonds, and investment funds. Proposed legislative amendments published for public review establish legal mechanisms to integrate traditional financial instruments into blockchain-based formats, with enforcement targeted for February 4.

The expansion opens digital investment channels for broader capital markets while introducing structured oversight. Under the initial rollout, institutions will gain access to private money funds, private debt, and trust-based unlisted equities, along with pilot projects for fractional investments. Retail participation in public bonds and funds will follow once market stability is established, supported by a 100 million won annual trading cap per exchange for over-the-counter retail accounts.

Market participants will watch the conclusion of the public comment period in November as regulators finalize the rule changes. Attention will also turn to non-financial firms seeking account management approval under a 4 billion won minimum capital threshold ahead of the planned February implementation.

## Key points

- South Korean regulators proposed rules to expand tokenized securities beyond real estate and art to stocks, bonds, and funds.
- Implementation of the updated regulatory framework is scheduled for February 4.
- Initial phases will prioritize institutional offerings like private funds and private bonds before retail expansion.
- Retail investors face an annual over-the-counter platform net purchase cap of 100 million won per exchange.
- Non-financial companies with at least 4 billion won in capital may directly manage investor accounts.

## Questions and answers

### What new asset types is South Korea adding to tokenized securities?

South Korea is expanding tokenized securities to include traditional financial assets such as stocks, bonds, and investment funds beyond existing fractional real estate and art offerings.

### When will South Korea's updated tokenized securities rules take effect?

The proposed regulatory amendments are scheduled to take effect on February 4 following a public notice period running through November 11.

### What limits apply to retail investors buying tokenized securities in South Korea?

Regulators are considering an annual net purchase limit of 100 million won per exchange for retail investors trading on over-the-counter platforms.