South Korea to Permit Stocks, Bonds and Funds in Security Token Offerings
South Korea's Financial Services Commission announced that stocks, bonds and funds will be allowed in security token offerings under revised capital market rules.
The Financial Services Commission said amendments to the Capital Market Act and Electronic Securities Act will take effect in February, enabling tokenized securities backed by equities, bonds and funds. Detailed sub-rules have been updated to support these digital assets. Individual investors will face a cap of 100 million won per year in the forthcoming over-the-counter market. The regulatory changes follow a legislative announcement made on September 4.
Why it matters
The rule change opens South Korean capital markets to tokenized assets, potentially expanding investment options and modernizing finance.
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