Tokenized securities market in South Korea eyes expansion into bonds and funds

South Korea’s tokenized securities market is preparing to expand beyond fractional investments tied to real estate and art into bonds and funds, Etoday reported. According to South Korea’s Financial Services Commission on Oct. 11, proposed revisions to subordinate regulations under the Electronic Securities Act and the Capital Markets Act related to tokenized securities are open for public comment from Oct. 2 through Nov. 11. The rollout of tokenized securities will proceed in phases by product type. The first phase covers privately placed money market funds for institutional investors, privately placed bonds, unlisted shares using trusts, and publicly offered fractional investment securities. For unlisted shares, beneficiary certificates in token form will be issued based on shares placed in trust, while shareholder rights such as voting rights and dividends will continue to be managed under the existing electronic securities system.