BlockBeats report: On August 22, fractionalized investment products based on assets and rights such as art, real estate, and music copyrights are expected to officially launch on the Korea Exchange (KRX) this November and be traded like stocks.
The Korea Exchange currently plans to launch a new securities market on November 16, with system development and market participant preparations underway. Prior to this, KRX intends to conduct a six-week simulated trading period from October 6 to November 13. However, the actual launch date may still be adjusted based on the financial regulator's approval timeline for listed products.
New-type securities refer to financial products that securitize rights generated from various assets or businesses, differing from traditional securities such as stocks and bonds, which have standardized rights structures. Representative examples include investment contract securities and non-monetary trust beneficiary securities, among others. Diverse underlying assets—such as artworks, real estate, music copyrights, film production, and livestock farming—can all be used to develop fractionalized investment products.
After the market opens, investors will be able to buy and sell new securities through their brokerage accounts. Trading hours will align with those of the stock spot market, from 9:00 AM to 3:30 PM, and limit orders are expected to be used initially. Products that were previously traded only through fragmented investment platforms will officially enter the exchange-traded market of the Korea Exchange, which is considered significant. Meanwhile, new securities will also be subject to listing requirements.
However, it is important to note that the new securities market launched by the Korea Exchange cannot be directly equated with a security token trading market. The new securities traded on the exchange market in November will initially continue to be issued and registered under the existing electronic securities system. Security tokens, by contrast, refer to securities issued and managed using a blockchain-based distributed ledger as the securities register. The Financial Services Commission has established a legal foundation for issuing security tokens and investment contract securities via distributed ledgers through amendments to the Electronic Securities Act and the Capital Markets Act, which were passed by the National Assembly in January this year. These laws will officially take effect on February 4, 2027, following the completion of supporting regulations and infrastructure development.