South Korea plans to open up tokenization of bonds and funds, with the annual net purchase cap for retail over-the-counter investments likely to be set at 100 million won.

PANews October 12 news, according to South Korean media EToday, the South Korean Financial Services Commission disclosed that the deadline for public comments on the supporting amendments to the Electronic Securities Act and the Capital Markets Act related to securities tokenization is November 11, with implementation planned to align with the law's effective date of February 4, 2027.

It is reported that the amendments propose expanding the scope of tokenization to traditional securities such as stocks, bonds, and funds, and adopting a phased introduction mechanism. The first phase is intended to cover private money market funds (MMFs) exclusively for institutional investors, private bonds, trust-based unlisted stocks, and publicly offered fractional investment securities, while publicly offered bonds and funds for ordinary investors will be gradually opened after evaluating initial market operations and demand.

South Korean regulators also plan to establish an approval basis for over-the-counter exchanges for bonds aimed at ordinary investors, and propose limiting ordinary investors' annual net purchases on a single exchange to 100 million won. In addition, the settlement mechanism remains a subsequent priority; initially, the existing cash settlement system of the Korea Securities Depository and Clearing Corporation will continue to be used, while stablecoin-based on-chain securities delivery will need to wait for the advancement of relevant legislation.