Samsung SDS, the information technology services arm of Samsung Group, has secured a contract to build and operate a blockchain-based token securities platform for the Korea Securities Depository (KSD), according to local reports. The project marks a significant step in South Korea’s push to modernize its financial market infrastructure ahead of a new legal framework for tokenized assets.
Contract details and timeline
The contract was awarded to Samsung SDS following a competitive process, as reported by Yonhap News Agency and The Korea Times. The platform is expected to be fully operational by February 2027, aligning with the scheduled enactment of South Korea’s security token legislation. The system will convert KSD’s existing technology verification testbed into a production-grade service capable of handling tokenized securities issuance, trading, and rights management.
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Integration with existing systems
KSD plans to link its current electronic securities account system with blockchain-based distributed ledger technology. This integration aims to strengthen the issuance and management of tokenized securities, ensuring that the new system can seamlessly interact with the country’s established financial infrastructure. Samsung SDS previously contributed to KSD’s tokenization efforts, including function-analysis consulting in 2024 and testbed construction in 2025, as reported by Seoul Economic Daily.
South Korea’s regulatory framework
The project comes as South Korea finalizes its legal foundation for security tokens. On January 15, the Financial Services Commission (FSC) announced that amendments to the Electronic Registration Act and the Financial Investment Services and Capital Markets Act had passed the National Assembly. These amendments legally recognize blockchain-based distributed ledgers as securities registries, placing KSD at the center of the future token securities infrastructure. Issuers will be required to follow legally mandated procedures and apply for electronic registration with KSD.
On March 4, the FSC launched a public-private consultative body to develop rules and infrastructure for security tokens across four areas: technology and infrastructure, issuance, circulation, and payment and settlement. The framework is scheduled to take effect on February 4, 2027, closely matching the target completion date for the Samsung SDS platform.
Why this matters
This development signals South Korea’s commitment to integrating blockchain technology into its regulated financial markets. By placing a major government-backed depository at the center of tokenized securities infrastructure, the country is taking a structured approach to digital asset adoption. For market participants, the move provides clarity on how tokenized securities will be issued, registered, and managed within a legal framework. It also positions South Korea as a potential leader in institutional-grade blockchain adoption in Asia.
Conclusion
Samsung SDS’s contract to build the KSD blockchain platform represents a concrete step toward operationalizing South Korea’s security token framework. With the platform set to go live in February 2027, the project bridges the gap between regulatory intent and market-ready infrastructure, offering a model for other jurisdictions exploring similar initiatives.
FAQs
Q1: What is the Korea Securities Depository (KSD)?
A1: KSD is South Korea’s central securities depository, responsible for the safe custody, registration, and settlement of securities. It plays a key role in the country’s financial market infrastructure.
Q2: What will the new blockchain platform do?
A2: The platform will enable the issuance, registration, and management of tokenized securities using blockchain technology. It will integrate with KSD’s existing electronic securities system to support a hybrid model of traditional and digital asset management.
Q3: When will South Korea’s security token framework take effect?
A3: The framework, established through amendments to the Electronic Registration Act and the Financial Investment Services and Capital Markets Act, is scheduled to take effect on February 4, 2027.
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