South Korea to release tokenized security rules in July, allowing bundled asset issuance

Huo Xing Finance reports, according to Money Today, that the Financial Services Commission of South Korea will release detailed regulations on tokenized securities in July, in preparation for implementation in February next year. The country’s financial authorities will permit the bundling of multiple underlying assets to issue fractionalized investment securities and will establish a roadmap for tokenizing traditional securities such as stocks and bonds. The Financial Services Commission noted that while the bundling of underlying assets into fractionalized securities was previously prohibited, it now plans to allow such bundling within certain limits. The Commission emphasized that market order and investor protection are fundamental prerequisites, but regulation will not be the primary focus. The annual investment limit for platforms issuing fractionalized securities is set between 10 million and 20 million KRW, with a crowdfunding limit of 5 million KRW per offering and a total cap of 10 million KRW. The annual sales limit for over-the-counter trading of non-listed stocks is 300 million KRW, while the limit for over-the-counter trading of investment contract securities is 40 million KRW.