South Korea Sets $2.8 Million Capital Requirement for…
By Abdelaziz Fathi
AI summary of the source article
South Korea's Financial Services Commission (FSC) has proposed operational rules for issuing and trading tokenized securities, scheduled to take effect on Feb. 4, 2027. Companies that issue tokenized securities and maintain client accounts must have at least 4 billion won (approximately $2.8 million) in equity capital and maintain dedicated personnel across account management, internal controls, and IT. Furthermore, distributed ledgers must be shared across at least two account management entities alongside the Korea Securities Depository. To manage risks, the FSC plans to cap retail investors at 100 million won (around $70,000) in annual net purchases per over-the-counter exchange.
Why it matters
The framework establishes that direct token issuance and account management will be treated as regulated financial activities subject to strict capital and staffing controls rather than an unrestricted fintech sector.
Key facts
- Issuer account management entities require a minimum equity capital of 4 billion won (roughly $2.8 million).
- Retail investors face an annual net purchase cap of 100 million won (approx. $70,000) on each over-the-counter exchange.
- The underlying legislative amendments establishing the tokenized securities framework take effect on Feb. 4, 2027.