As the government unveiled its roadmap to foster the digital asset sector, fractional investment and token securities (STO) have emerged as core pillars of the next wave of financial innovation, prompting securities firms to prepare for entry in earnest. The Financial Services Commission announced it would “accelerate institutionalization of token securities as the backbone of capital market innovation.”
Fractional investment allows high-value assets such as artworks, real estate, and copyrights to be divided into small units, lowering the threshold for participation and drawing strong interest from retail investors. Currently, there are 12 platforms operating in Korea, and trading volumes are expanding rapidly.
Token securities, digital securities issued and traded via blockchain, are regarded as more transparent and convenient compared to traditional electronic securities. The financial investment industry projects the domestic token securities market could reach up to 50 trillion won by 2025.
Major securities firms including Kiwoom Securities, NH Investment & Securities, and Samsung Securities have launched dedicated task forces to explore STO issuance and the development of trading platforms. A securities company official commented, “Fractional investment and token securities can broaden retail investor participation and significantly increase market liquidity. We are finalizing our commercialization roadmap.”
The Korea Financial Investment Association has begun research to draft guidelines for digital asset securities, while discussions on related legislation are gaining momentum. However, some observers warn that if amendments to the Capital Markets Act and the Electronic Securities Act are delayed, certain businesses may only be permitted on a limited basis.
Experts note that while fractional investment and STO could become major new funding models, robust investor protection and liquidity risk management systems are urgently needed. Regulators have stated that they will conduct registration reviews for platform operators while establishing safeguards for investors.
The government plans to simultaneously roll out pilot programs and regulatory frameworks for fractional investment and token securities in the second half of this year. Whether digital assets will establish themselves as a growth driver for capital market innovation remains to be seen.
