On September 4, 2026, the Financial Services Commission (the “FSC”) announced its “Policy Direction for Security Tokens” at the third meeting of the “Public-Private Joint Security Token Council.” This policy direction is expected to have a direct and significant impact on a wide range of market participants, as it seeks to establish “infrastructure for issuing all types of securities as security tokens”—encompassing not only fractional investments but also the tokenization of conventional securities such as stocks, bonds and funds.

Accordingly, we introduce the key aspects of the Policy Direction for Security Tokens below for your reference.

[Korean Version]