South Korea is considering classifying tokenized stocks as securities rather than digital assets, which could subject investors to taxation under existing securities laws as early as the end of 2026. 🔸 The South Korean Ministry of Economy and Finance stated that although tokenized stocks are issued as tokens on a blockchain, they are fundamentally securities because they represent the economic rights of actual shares. 🔸 If the Financial Services Commission (FSC) adopts the same interpretation in regulations expected to be issued in July, taxation could begin in the second half of 2026. 🔸 Even tokenized stocks traded on foreign platforms may be subject to taxation in South Korea if the underlying asset is determined to be a security. 🔸 Tokenized stocks involve custodizing actual shares with a regulated entity, then issuing tokens on a blockchain to represent ownership and enable 24/7 trading.