South Korea Moves to Classify Tokenized Stocks as Securities, Raising Tax Questions

South Korea’s Ministry of Economy and Finance has indicated that tokenized stocks should be treated as securities rather than virtual assets, a decision that could bring them under the country’s existing tax rules.

A ministry official said that although tokenized stocks are issued in digital form on blockchain networks, they are fundamentally closer to traditional securities because they represent economic rights tied to real shares.

Financial Regulators Reviewing Legal Framework

The classification could become official if the Financial Services Commission (FSC) adopts the same interpretation in planned regulatory updates expected in July. If approved, taxation on tokenized stocks could begin in the second half of 2026 under the Capital Markets Act.

Tokenized stocks allow investors to gain exposure to real company shares while enabling blockchain-based trading and settlement.

Growing Tokenized Equity Market Draws Attention

The discussion comes as demand for tokenized equities continues to expand worldwide. The sector recently reached a market capitalization of approximately $5.5 billion, making it one of the fastest growing segments in the real-world asset market. Overseas-issued tokenized stocks may also fall within South Korea’s tax framework if they meet existing securities definitions.