{"content_id":"mclthckpjf","slug":"krx-new-securities-market-fractional-investment-sto","locale":"en","schema_type":"Article","category":"knowledge_base","category_name":"Knowledge Base","title":"Korea Exchange's New Securities Market: Fractional Investment Structure and Differences from STO","summary":"The Korea Exchange plans to open a new securities market on November 16, 2026, for trading fractional investment securities involving artworks, real estate, and other assets. This will be an exchange market for trading conventional electronic securities and is distinct from the token securities framework that uses distributed ledgers.","sponsorship_disclosure":null,"affiliate_disclosure":null,"commerce_disclosure":null,"author":{"name":"Injoys Editorial Team","url":"https://injoys.com/ko/about"},"key_points":["The new securities market is an exchange market where fractional investment securities that meet specified listing requirements are traded on the Korea Exchange.","Investors buy securities containing rights to returns and redemption as specified in the issuance terms, rather than co-ownership of the underlying assets themselves.","Returns on fractional investments must be calculated by deducting all fees, taxes, and transaction costs from dividends and capital gains.","Even when listed on an exchange market, insufficient trading volume may prevent investors from selling at their desired time and price.","Token securities refer to a method of issuing and recording securities using distributed ledgers and are not the same concept as the new securities market itself."],"content_markdown":"The Korea Exchange plans to launch a **New Securities Market** for trading fractional investment products on November 16, 2026. This market will allow securities that meet certain requirements among products previously traded mainly within individual platforms—such as art, real estate, and music revenue rights—to be bought and sold on the exchange through securities firms.\n\nThe launch date and detailed trading rules are provisional. Before investing, investors should review the Korea Exchange’s final business regulations, participating securities firms, and the securities registration statements and investment prospectuses of listed products.\n\n## What Is the New Securities Market?\n\nThe New Securities Market is a separate exchange market within the Korea Exchange created to trade new types of securities that have been difficult to list on the stock market. Key products include investment contract securities and non-monetary trust beneficiary securities issued based on tangible assets or revenue from specific businesses.\n\n| Category | Key Details of the Announced Launch Plan |\n|---|---|\n| Operator | Korea Exchange (KRX) |\n| Planned launch date | November 16, 2026 |\n| Main underlying assets | Art, real estate, music copyrights and revenue rights, etc. |\n| Investment channel | Accounts and trading systems of securities firms participating in the market |\n| Trading hours | Planned from 9:00 a.m. to 3:30 p.m. |\n| Order method | Planned to focus on limit orders during regular market hours |\n| Rights records | Existing electronic securities system |\n| Key risks | Loss of principal, price fluctuations, low liquidity, underlying asset valuation and operational risks |\n\nExisting fractional investments have often been issued and traded on operators’ own platforms for each type of asset. Once the New Securities Market opens, orders for listed products will be brought together in a single exchange market and traded through securities firms.\n\nHowever, not all fractional investment products will be transferred automatically. The announced plan includes requirements such as a product issuance size of at least KRW 3 billion and issuer shareholders’ equity of at least KRW 2 billion. An interest-alignment mechanism requiring issuers to retain a specified amount until maturity has also been discussed. Specific ratios and exceptions should be checked in the final listing rules and disclosures for each product.\n\n## What Rights Are Actually Purchased in Fractional Investments?\n\nFractional investment is a structure that divides the economic benefits generated by a high-value asset or business into multiple units of securities. What investors generally purchase is not a direct ownership interest in the building, artwork, or music itself, but the **contractual rights specified by the issued securities**.\n\nFor example, even if an investor buys fractional real estate investment securities, the investor’s name is not recorded as a co-owner in the building’s property register. Instead, depending on the terms of the securities, the investor may have the right to receive a distribution of rental income or the remaining proceeds after the asset is sold.\n\nThe rights differ by product. The following should be reviewed in the investment prospectus:\n\n- The basis for calculating dividends or income distributions\n- The entity responsible for holding, operating, and selling the asset\n- Maturity and maturity extension conditions\n- The process and voting rights for deciding on an asset sale\n- The existence of other rights, such as security interests and senior loans\n- The asset segregation structure if the issuer or asset management company becomes insolvent\n- Fees, taxes, and the order in which losses are borne\n\n## How Are Returns and Losses Calculated?\n\nAssume that securities are issued based on a hypothetical office building worth KRW 10 billion and that an investor invests KRW 1 million. Under the simplified assumption that there is no other financing or difference in priority, this represents 0.01% of the total asset value, or one ten-thousandth.\n\nIf annual rental income is KRW 500 million and asset-level expenses such as management fees and taxes are KRW 200 million, the asset’s net income is KRW 300 million. Assuming this entire amount is distributed in the same proportion, the investor’s annual share is KRW 30,000.\n\n| Item | Simplified Calculation |\n|---|---:|\n| Investment amount | KRW 1 million |\n| Investor’s share of the asset’s net income | KRW 30,000 per year |\n| Simple annual return | 3% |\n| Distributions received at the same rate over five years | KRW 150,000 |\n| Value of the interest if the asset is sold for KRW 12 billion after five years | KRW 1.2 million |\n| Total amount recovered | KRW 1.35 million |\n| Profit relative to investment principal | KRW 350,000 |\n\nThis calculation is only an illustrative example. It does not reflect issuance, asset management, trading, or sale fees and taxes, and there is no guarantee that rental income and asset prices will remain stable. If the sale price falls to KRW 8 billion, the value of the interest would be KRW 800,000 under the same simplified assumptions, resulting in a loss of principal.\n\nA safer way to approach actual expected returns is as follows:\n\n**Investor’s net return = distributions + gains from sale or trading − issuance, management, trading, and sale costs − taxes**\n\nThe underlying asset return shown in advertisements may differ from the net return received by investors. Investors should also check whether costs are deducted first at the asset level or charged separately to their accounts.\n\n## Liquidity Risk Remains Even with Exchange Trading\n\nIn the New Securities Market, investors can sell their securities to other investors without waiting until maturity or the sale of the asset. However, an exchange listing does not mean the securities can always be converted into cash at the desired price.\n\nFractional investment securities may have a small issuance size and few investors for each listed product. If there are insufficient buy orders, sell orders may not be filled, or investors may have to offer a price substantially below the latest trading price to make a sale. Even if the appraised value of the underlying asset remains unchanged, the market price may be discounted because of insufficient liquidity.\n\nThe following indicators should be reviewed together before investing:\n\n- Recent trading volume and trading value\n- The spread between bid and ask prices\n- Concentration of holdings among specific investors or the issuer\n- Maturity and the expected timing of the asset sale\n- The issuer’s mandatory holding amount\n- Whether a market maker or liquidity provision program exists\n\n## How Does the New Securities Market Differ from Token Securities?\n\nThe New Securities Market and token securities (STO) are not the same concept. The New Securities Market concerns **where securities are traded**, while token securities concern the system and technology used to **issue securities and record their rights in a ledger**.\n\n| Comparison Criterion | New Securities Market | Token Securities System |\n|---|---|---|\n| Core nature | Exchange-based secondary market operated by the Korea Exchange | System for issuing and recording distributed-ledger-based securities |\n| Main question | Where are securities bought and sold? | How are rights and ownership details recorded? |\n| Recording method | Existing electronic securities system during the initial launch period | Distributed ledger method that meets applicable requirements |\n| Planned timing | Market launch planned for November 16, 2026 | Relevant laws scheduled to take effect in February 2027 |\n| Legal nature | Trading venue for listed new securities | A method of digitizing securities, not a separate asset class |\n| Relationship | Securities can be traded even if they are not token securities | May be integrated with issuance and trading systems in the future if requirements are met |\n\nSTO generally means Security Token Offering, but under the Korean system, the term **token securities** is used for securities under the Financial Investment Services and Capital Markets Act that have been digitized using distributed ledger technology. Even if the name includes “token,” they are not treated in the same way as ordinary virtual assets. If their economic substance is that of securities, securities regulations apply.\n\nThe implementation of relevant laws also does not mean that all tangible assets will immediately be issued or traded as token securities. Subordinate regulations and infrastructure must be established regarding issuers, distributed ledger requirements, investor protection, disclosure, account management institutions, and secondary markets.\n\n## Priority of Rights That Market Articles May Overlook\n\nThe key issue in fractional investment is not only the outlook for asset prices, but also **where investors’ rights rank relative to those of other creditors**. Even if the underlying asset is the same KRW 10 billion building, if there is a KRW 7 billion senior loan, the proceeds from the asset sale may first be used to repay the loan. Holders of fractional investment securities may only be able to recover funds from the remaining amount.\n\nThe possibility of losses should therefore not be assessed solely on the basis of the asset’s appraised value. The following structures should be distinguished:\n\n1. Who is the legal owner of the underlying asset?\n2. Is the underlying asset segregated from the issuer’s proprietary assets?\n3. How much is owed under senior rights such as bank loans and security interests?\n4. Are investors’ rights claims, trust beneficiary rights, or rights under an investment contract?\n5. Who will continue to manage the asset if the issuer or asset management company defaults?\n\nAn exchange listing is not a certification guaranteeing the product’s profitability or the recovery of principal. Meeting listing requirements and having high investment value are separate matters.\n\n## Key Risks and Review Items for Fractional Investments\n\n| Risk | What to Review |\n|---|---|\n| Loss of principal | Effects of declining asset prices and reduced business income on repayment amounts |\n| Liquidity risk | Trading volume, bid-ask spreads, sale restrictions, and the ability to convert to cash before maturity |\n| Valuation risk | Appraisal institution, valuation date, valuation method, and conflicts of interest |\n| Issuer risk | Financial condition, shareholders’ equity, mandatory holdings, and asset segregation in insolvency |\n| Operational risk | Tenant vacancies, artwork storage, fluctuations in copyright income, and insurance coverage |\n| Cost risk | Issuance, management, trading, and sale fees, and the cost of selling before maturity |\n| Rights structure risk | Senior claims, voting rights, authority to decide on a sale, and maturity extension conditions |\n| Concentration risk | Whether investments are concentrated in a single asset, region, or operator |\n\nFor art, authenticity, storage, insurance, and the timing of sale are important. For real estate, vacancies, interest rates, repair costs, and secured loans affect returns. For music or intellectual property rights, past income does not guarantee future income, and cash flow may vary substantially depending on consumption trends and contract periods.\n\n## Review Steps Before Investing\n\n1. **Check the type of security.** Distinguish direct ownership of the underlying asset from investment contract securities and beneficiary securities.\n2. **Recalculate the cash flow.** Deduct all fees, taxes, and expected losses from the stated return.\n3. **Check senior rights.** Review secured loans and the repayment priority of other creditors.\n4. **Assess post-listing tradability.** Actual trading volume may be low even if the issuance size is large.\n5. **Calculate the worst-case recovery scenario.** Account for the possibility that an asset price decline, income suspension, and sale delay may occur simultaneously.\n6. **Read the final disclosures.** Review the securities registration statement, investment prospectus, appraisal report, trust agreement, and fee schedule.\n\n## Market Size and Future Changes\n\nIn the provided market data, the cumulative size of South Korea’s fractional investment market was reported as approximately KRW 640 billion based on a Bank of Korea estimate, while the secondary market size was approximately KRW 14.5 billion. Cumulative issuance, outstanding balance, and trading value are different indicators, so these figures should not be directly compared or interpreted as the total market value. Some analyses indicate that music copyright-related products account for a substantial portion of the cumulative market, but the proportion may vary depending on the reference date and products included.\n\nOnce the token securities system takes effect, there may be more attempts to securitize various rights, including not only real estate and art but also bonds, intellectual property rights, and project revenue rights. However, the fact that an asset can be technically divided and issued more easily does not improve its quality, liquidity, or profitability.\n\nA privately led over-the-counter secondary market is also being pursued separately. The over-the-counter market and the Korea Exchange’s New Securities Market may differ in their operators, trading rules, participating securities firms, and investor protection systems, so they should not be regarded as the same market. Whether they actually launch and on what schedule should be confirmed through approvals and final announcements from each operator.","content_html":"\u003cp\u003eThe Korea Exchange plans to launch a \u003cstrong\u003eNew Securities Market\u003c/strong\u003e for trading fractional investment products on November 16, 2026. This market will allow securities that meet certain requirements among products previously traded mainly within individual platforms—such as art, real estate, and music revenue rights—to be bought and sold on the exchange through securities firms.\u003c/p\u003e\n\u003cp\u003eThe launch date and detailed trading rules are provisional. Before investing, investors should review the Korea Exchange’s final business regulations, participating securities firms, and the securities registration statements and investment prospectuses of listed products.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#what-is-the-new-securities-market\" class=\"anchor\" id=\"what-is-the-new-securities-market\"\u003e\u003c/a\u003eWhat Is the New Securities Market?\u003c/h2\u003e\n\u003cp\u003eThe New Securities Market is a separate exchange market within the Korea Exchange created to trade new types of securities that have been difficult to list on the stock market. Key products include investment contract securities and non-monetary trust beneficiary securities issued based on tangible assets or revenue from specific businesses.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eCategory\u003c/th\u003e\n\u003cth\u003eKey Details of the Announced Launch Plan\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eOperator\u003c/td\u003e\n\u003ctd data-label=\"Key Details of the Announced Launch Plan\"\u003eKorea Exchange (KRX)\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003ePlanned launch date\u003c/td\u003e\n\u003ctd data-label=\"Key Details of the Announced Launch Plan\"\u003eNovember 16, 2026\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eMain underlying assets\u003c/td\u003e\n\u003ctd data-label=\"Key Details of the Announced Launch Plan\"\u003eArt, real estate, music copyrights and revenue rights, etc.\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eInvestment channel\u003c/td\u003e\n\u003ctd data-label=\"Key Details of the Announced Launch Plan\"\u003eAccounts and trading systems of securities firms participating in the market\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eTrading hours\u003c/td\u003e\n\u003ctd data-label=\"Key Details of the Announced Launch Plan\"\u003ePlanned from 9:00 a.m. to 3:30 p.m.\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eOrder method\u003c/td\u003e\n\u003ctd data-label=\"Key Details of the Announced Launch Plan\"\u003ePlanned to focus on limit orders during regular market hours\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eRights records\u003c/td\u003e\n\u003ctd data-label=\"Key Details of the Announced Launch Plan\"\u003eExisting electronic securities system\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eKey risks\u003c/td\u003e\n\u003ctd data-label=\"Key Details of the Announced Launch Plan\"\u003eLoss of principal, price fluctuations, low liquidity, underlying asset valuation and operational risks\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eExisting fractional investments have often been issued and traded on operators’ own platforms for each type of asset. Once the New Securities Market opens, orders for listed products will be brought together in a single exchange market and traded through securities firms.\u003c/p\u003e\n\u003cp\u003eHowever, not all fractional investment products will be transferred automatically. The announced plan includes requirements such as a product issuance size of at least KRW 3 billion and issuer shareholders’ equity of at least KRW 2 billion. An interest-alignment mechanism requiring issuers to retain a specified amount until maturity has also been discussed. Specific ratios and exceptions should be checked in the final listing rules and disclosures for each product.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#what-rights-are-actually-purchased-in-fractional-investments\" class=\"anchor\" id=\"what-rights-are-actually-purchased-in-fractional-investments\"\u003e\u003c/a\u003eWhat Rights Are Actually Purchased in Fractional Investments?\u003c/h2\u003e\n\u003cp\u003eFractional investment is a structure that divides the economic benefits generated by a high-value asset or business into multiple units of securities. What investors generally purchase is not a direct ownership interest in the building, artwork, or music itself, but the \u003cstrong\u003econtractual rights specified by the issued securities\u003c/strong\u003e.\u003c/p\u003e\n\u003cp\u003eFor example, even if an investor buys fractional real estate investment securities, the investor’s name is not recorded as a co-owner in the building’s property register. Instead, depending on the terms of the securities, the investor may have the right to receive a distribution of rental income or the remaining proceeds after the asset is sold.\u003c/p\u003e\n\u003cp\u003eThe rights differ by product. The following should be reviewed in the investment prospectus:\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eThe basis for calculating dividends or income distributions\u003c/li\u003e\n\u003cli\u003eThe entity responsible for holding, operating, and selling the asset\u003c/li\u003e\n\u003cli\u003eMaturity and maturity extension conditions\u003c/li\u003e\n\u003cli\u003eThe process and voting rights for deciding on an asset sale\u003c/li\u003e\n\u003cli\u003eThe existence of other rights, such as security interests and senior loans\u003c/li\u003e\n\u003cli\u003eThe asset segregation structure if the issuer or asset management company becomes insolvent\u003c/li\u003e\n\u003cli\u003eFees, taxes, and the order in which losses are borne\u003c/li\u003e\n\u003c/ul\u003e\n\u003ch2\u003e\n\u003ca href=\"#how-are-returns-and-losses-calculated\" class=\"anchor\" id=\"how-are-returns-and-losses-calculated\"\u003e\u003c/a\u003eHow Are Returns and Losses Calculated?\u003c/h2\u003e\n\u003cp\u003eAssume that securities are issued based on a hypothetical office building worth KRW 10 billion and that an investor invests KRW 1 million. Under the simplified assumption that there is no other financing or difference in priority, this represents 0.01% of the total asset value, or one ten-thousandth.\u003c/p\u003e\n\u003cp\u003eIf annual rental income is KRW 500 million and asset-level expenses such as management fees and taxes are KRW 200 million, the asset’s net income is KRW 300 million. Assuming this entire amount is distributed in the same proportion, the investor’s annual share is KRW 30,000.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eItem\u003c/th\u003e\n\u003cth\u003eSimplified Calculation\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item\"\u003eInvestment amount\u003c/td\u003e\n\u003ctd data-label=\"Simplified Calculation\"\u003eKRW 1 million\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item\"\u003eInvestor’s share of the asset’s net income\u003c/td\u003e\n\u003ctd data-label=\"Simplified Calculation\"\u003eKRW 30,000 per year\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item\"\u003eSimple annual return\u003c/td\u003e\n\u003ctd data-label=\"Simplified Calculation\"\u003e3%\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item\"\u003eDistributions received at the same rate over five years\u003c/td\u003e\n\u003ctd data-label=\"Simplified Calculation\"\u003eKRW 150,000\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item\"\u003eValue of the interest if the asset is sold for KRW 12 billion after five years\u003c/td\u003e\n\u003ctd data-label=\"Simplified Calculation\"\u003eKRW 1.2 million\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item\"\u003eTotal amount recovered\u003c/td\u003e\n\u003ctd data-label=\"Simplified Calculation\"\u003eKRW 1.35 million\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item\"\u003eProfit relative to investment principal\u003c/td\u003e\n\u003ctd data-label=\"Simplified Calculation\"\u003eKRW 350,000\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eThis calculation is only an illustrative example. It does not reflect issuance, asset management, trading, or sale fees and taxes, and there is no guarantee that rental income and asset prices will remain stable. If the sale price falls to KRW 8 billion, the value of the interest would be KRW 800,000 under the same simplified assumptions, resulting in a loss of principal.\u003c/p\u003e\n\u003cp\u003eA safer way to approach actual expected returns is as follows:\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eInvestor’s net return = distributions + gains from sale or trading − issuance, management, trading, and sale costs − taxes\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eThe underlying asset return shown in advertisements may differ from the net return received by investors. Investors should also check whether costs are deducted first at the asset level or charged separately to their accounts.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#liquidity-risk-remains-even-with-exchange-trading\" class=\"anchor\" id=\"liquidity-risk-remains-even-with-exchange-trading\"\u003e\u003c/a\u003eLiquidity Risk Remains Even with Exchange Trading\u003c/h2\u003e\n\u003cp\u003eIn the New Securities Market, investors can sell their securities to other investors without waiting until maturity or the sale of the asset. However, an exchange listing does not mean the securities can always be converted into cash at the desired price.\u003c/p\u003e\n\u003cp\u003eFractional investment securities may have a small issuance size and few investors for each listed product. If there are insufficient buy orders, sell orders may not be filled, or investors may have to offer a price substantially below the latest trading price to make a sale. Even if the appraised value of the underlying asset remains unchanged, the market price may be discounted because of insufficient liquidity.\u003c/p\u003e\n\u003cp\u003eThe following indicators should be reviewed together before investing:\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eRecent trading volume and trading value\u003c/li\u003e\n\u003cli\u003eThe spread between bid and ask prices\u003c/li\u003e\n\u003cli\u003eConcentration of holdings among specific investors or the issuer\u003c/li\u003e\n\u003cli\u003eMaturity and the expected timing of the asset sale\u003c/li\u003e\n\u003cli\u003eThe issuer’s mandatory holding amount\u003c/li\u003e\n\u003cli\u003eWhether a market maker or liquidity provision program exists\u003c/li\u003e\n\u003c/ul\u003e\n\u003ch2\u003e\n\u003ca href=\"#how-does-the-new-securities-market-differ-from-token-securities\" class=\"anchor\" id=\"how-does-the-new-securities-market-differ-from-token-securities\"\u003e\u003c/a\u003eHow Does the New Securities Market Differ from Token Securities?\u003c/h2\u003e\n\u003cp\u003eThe New Securities Market and token securities (STO) are not the same concept. The New Securities Market concerns \u003cstrong\u003ewhere securities are traded\u003c/strong\u003e, while token securities concern the system and technology used to \u003cstrong\u003eissue securities and record their rights in a ledger\u003c/strong\u003e.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eComparison Criterion\u003c/th\u003e\n\u003cth\u003eNew Securities Market\u003c/th\u003e\n\u003cth\u003eToken Securities System\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison Criterion\"\u003eCore nature\u003c/td\u003e\n\u003ctd data-label=\"New Securities Market\"\u003eExchange-based secondary market operated by the Korea Exchange\u003c/td\u003e\n\u003ctd data-label=\"Token Securities System\"\u003eSystem for issuing and recording distributed-ledger-based securities\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison Criterion\"\u003eMain question\u003c/td\u003e\n\u003ctd data-label=\"New Securities Market\"\u003eWhere are securities bought and sold?\u003c/td\u003e\n\u003ctd data-label=\"Token Securities System\"\u003eHow are rights and ownership details recorded?\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison Criterion\"\u003eRecording method\u003c/td\u003e\n\u003ctd data-label=\"New Securities Market\"\u003eExisting electronic securities system during the initial launch period\u003c/td\u003e\n\u003ctd data-label=\"Token Securities System\"\u003eDistributed ledger method that meets applicable requirements\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison Criterion\"\u003ePlanned timing\u003c/td\u003e\n\u003ctd data-label=\"New Securities Market\"\u003eMarket launch planned for November 16, 2026\u003c/td\u003e\n\u003ctd data-label=\"Token Securities System\"\u003eRelevant laws scheduled to take effect in February 2027\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison Criterion\"\u003eLegal nature\u003c/td\u003e\n\u003ctd data-label=\"New Securities Market\"\u003eTrading venue for listed new securities\u003c/td\u003e\n\u003ctd data-label=\"Token Securities System\"\u003eA method of digitizing securities, not a separate asset class\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison Criterion\"\u003eRelationship\u003c/td\u003e\n\u003ctd data-label=\"New Securities Market\"\u003eSecurities can be traded even if they are not token securities\u003c/td\u003e\n\u003ctd data-label=\"Token Securities System\"\u003eMay be integrated with issuance and trading systems in the future if requirements are met\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eSTO generally means Security Token Offering, but under the Korean system, the term \u003cstrong\u003etoken securities\u003c/strong\u003e is used for securities under the Financial Investment Services and Capital Markets Act that have been digitized using distributed ledger technology. Even if the name includes “token,” they are not treated in the same way as ordinary virtual assets. If their economic substance is that of securities, securities regulations apply.\u003c/p\u003e\n\u003cp\u003eThe implementation of relevant laws also does not mean that all tangible assets will immediately be issued or traded as token securities. Subordinate regulations and infrastructure must be established regarding issuers, distributed ledger requirements, investor protection, disclosure, account management institutions, and secondary markets.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#priority-of-rights-that-market-articles-may-overlook\" class=\"anchor\" id=\"priority-of-rights-that-market-articles-may-overlook\"\u003e\u003c/a\u003ePriority of Rights That Market Articles May Overlook\u003c/h2\u003e\n\u003cp\u003eThe key issue in fractional investment is not only the outlook for asset prices, but also \u003cstrong\u003ewhere investors’ rights rank relative to those of other creditors\u003c/strong\u003e. Even if the underlying asset is the same KRW 10 billion building, if there is a KRW 7 billion senior loan, the proceeds from the asset sale may first be used to repay the loan. Holders of fractional investment securities may only be able to recover funds from the remaining amount.\u003c/p\u003e\n\u003cp\u003eThe possibility of losses should therefore not be assessed solely on the basis of the asset’s appraised value. The following structures should be distinguished:\u003c/p\u003e\n\u003col\u003e\n\u003cli\u003eWho is the legal owner of the underlying asset?\u003c/li\u003e\n\u003cli\u003eIs the underlying asset segregated from the issuer’s proprietary assets?\u003c/li\u003e\n\u003cli\u003eHow much is owed under senior rights such as bank loans and security interests?\u003c/li\u003e\n\u003cli\u003eAre investors’ rights claims, trust beneficiary rights, or rights under an investment contract?\u003c/li\u003e\n\u003cli\u003eWho will continue to manage the asset if the issuer or asset management company defaults?\u003c/li\u003e\n\u003c/ol\u003e\n\u003cp\u003eAn exchange listing is not a certification guaranteeing the product’s profitability or the recovery of principal. Meeting listing requirements and having high investment value are separate matters.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#key-risks-and-review-items-for-fractional-investments\" class=\"anchor\" id=\"key-risks-and-review-items-for-fractional-investments\"\u003e\u003c/a\u003eKey Risks and Review Items for Fractional Investments\u003c/h2\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eRisk\u003c/th\u003e\n\u003cth\u003eWhat to Review\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Risk\"\u003eLoss of principal\u003c/td\u003e\n\u003ctd data-label=\"What to Review\"\u003eEffects of declining asset prices and reduced business income on repayment amounts\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Risk\"\u003eLiquidity risk\u003c/td\u003e\n\u003ctd data-label=\"What to Review\"\u003eTrading volume, bid-ask spreads, sale restrictions, and the ability to convert to cash before maturity\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Risk\"\u003eValuation risk\u003c/td\u003e\n\u003ctd data-label=\"What to Review\"\u003eAppraisal institution, valuation date, valuation method, and conflicts of interest\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Risk\"\u003eIssuer risk\u003c/td\u003e\n\u003ctd data-label=\"What to Review\"\u003eFinancial condition, shareholders’ equity, mandatory holdings, and asset segregation in insolvency\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Risk\"\u003eOperational risk\u003c/td\u003e\n\u003ctd data-label=\"What to Review\"\u003eTenant vacancies, artwork storage, fluctuations in copyright income, and insurance coverage\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Risk\"\u003eCost risk\u003c/td\u003e\n\u003ctd data-label=\"What to Review\"\u003eIssuance, management, trading, and sale fees, and the cost of selling before maturity\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Risk\"\u003eRights structure risk\u003c/td\u003e\n\u003ctd data-label=\"What to Review\"\u003eSenior claims, voting rights, authority to decide on a sale, and maturity extension conditions\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Risk\"\u003eConcentration risk\u003c/td\u003e\n\u003ctd data-label=\"What to Review\"\u003eWhether investments are concentrated in a single asset, region, or operator\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eFor art, authenticity, storage, insurance, and the timing of sale are important. For real estate, vacancies, interest rates, repair costs, and secured loans affect returns. For music or intellectual property rights, past income does not guarantee future income, and cash flow may vary substantially depending on consumption trends and contract periods.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#review-steps-before-investing\" class=\"anchor\" id=\"review-steps-before-investing\"\u003e\u003c/a\u003eReview Steps Before Investing\u003c/h2\u003e\n\u003col\u003e\n\u003cli\u003e\n\u003cstrong\u003eCheck the type of security.\u003c/strong\u003e Distinguish direct ownership of the underlying asset from investment contract securities and beneficiary securities.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eRecalculate the cash flow.\u003c/strong\u003e Deduct all fees, taxes, and expected losses from the stated return.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eCheck senior rights.\u003c/strong\u003e Review secured loans and the repayment priority of other creditors.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eAssess post-listing tradability.\u003c/strong\u003e Actual trading volume may be low even if the issuance size is large.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eCalculate the worst-case recovery scenario.\u003c/strong\u003e Account for the possibility that an asset price decline, income suspension, and sale delay may occur simultaneously.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eRead the final disclosures.\u003c/strong\u003e Review the securities registration statement, investment prospectus, appraisal report, trust agreement, and fee schedule.\u003c/li\u003e\n\u003c/ol\u003e\n\u003ch2\u003e\n\u003ca href=\"#market-size-and-future-changes\" class=\"anchor\" id=\"market-size-and-future-changes\"\u003e\u003c/a\u003eMarket Size and Future Changes\u003c/h2\u003e\n\u003cp\u003eIn the provided market data, the cumulative size of South Korea’s fractional investment market was reported as approximately KRW 640 billion based on a Bank of Korea estimate, while the secondary market size was approximately KRW 14.5 billion. Cumulative issuance, outstanding balance, and trading value are different indicators, so these figures should not be directly compared or interpreted as the total market value. Some analyses indicate that music copyright-related products account for a substantial portion of the cumulative market, but the proportion may vary depending on the reference date and products included.\u003c/p\u003e\n\u003cp\u003eOnce the token securities system takes effect, there may be more attempts to securitize various rights, including not only real estate and art but also bonds, intellectual property rights, and project revenue rights. However, the fact that an asset can be technically divided and issued more easily does not improve its quality, liquidity, or profitability.\u003c/p\u003e\n\u003cp\u003eA privately led over-the-counter secondary market is also being pursued separately. The over-the-counter market and the Korea Exchange’s New Securities Market may differ in their operators, trading rules, participating securities firms, and investor protection systems, so they should not be regarded as the same market. Whether they actually launch and on what schedule should be confirmed through approvals and final announcements from each operator.\u003c/p\u003e\n","tags":["Diversification","Fractional investing","Tokenized securities","New Securities Market"],"faqs":[{"question":"When will the new securities market open?","answer":"The Korea Exchange plans to open it on November 16, 2026. As this is a tentative schedule, you should check the Korea Exchange's final announcement for the actual opening date and trading rules."},{"question":"Can fractional investment products be traded through an existing securities account?","answer":"The market is designed to allow trading through securities firms participating in the new securities market, but it cannot be assumed that every securities firm will participate from the outset. Before trading, you should check whether the securities firm you use participates in the market and whether there are separate terms and application procedures."},{"question":"If I buy fractional real estate investment securities, will my name be entered in the property register?","answer":"Generally, it will not. Investors acquire economic rights defined in the product terms, such as trust beneficiary certificates or investment contract securities, rather than a direct co-ownership interest in the building."},{"question":"Is my principal guaranteed if a product is listed on the exchange?","answer":"It is not guaranteed. Losses may occur if the price and income of the underlying asset decline or costs increase, and low trading volume may make it difficult to sell before maturity."},{"question":"Are all products listed on the new securities market security tokens?","answer":"No. The new securities market is an exchange-based trading venue, and the rights to initially listed products will be recorded using the existing electronic securities system. Security tokens are a method of issuing and recording securities using distributed ledger technology."},{"question":"Once the laws related to security tokens take effect, will all products be immediately available for trading?","answer":"No. In addition to the laws taking effect, subordinate regulations, issuance and account management infrastructure, disclosure and investor protection requirements, and preparations for a secondary market are needed. Each product must also comply with securities regulations and issuance requirements."},{"question":"What costs should I check first when reviewing returns on fractional investments?","answer":"You should check asset acquisition and product structuring costs, issuance fees, asset management fees, trading fees, sale fees, and taxes. You should compare the investor's net return after deducting all these costs, rather than the underlying asset's total return."},{"question":"Are the exchange market and private over-the-counter fractional investment markets the same?","answer":"No. They may differ in their operators, trading rules, participating institutions, liquidity, and investor protection mechanisms. You should separately check the authorization status and applicable regulations of each market."}],"sources":[{"url":"https://www.krx.co.kr/","title":"Korea Exchange","type":"source"},{"url":"https://www.fsc.go.kr/","title":"Financial Services Commission","type":"source"},{"url":"https://www.law.go.kr/","title":"National Law Information Center","type":"source"},{"url":"https://www.bok.or.kr/","title":"Bank of Korea","type":"data_point"}],"images":[{"id":956,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MTMwNDIsInB1ciI6ImJsb2JfaWQifX0=--b563b3412036862c2b4b306093c969fad1714255/ai-526f889c.webp","is_representative":true,"generation_method":"ai_photo","license":"ai_generated","mime_type":"image/webp","translations":{"ko":{"alt":"미술관에서 태블릿 거래 화면을 확인하는 여성과 작품을 옮기는 직원","caption":"한 여성이 미술품 옆에서 태블릿의 투자 거래 데이터와 자료를 살펴보고 있다.","description":null},"en":{"alt":"Woman checking a trading screen on a tablet as a worker moves a framed painting in a gallery","caption":"A woman reviews investment data beside an artwork being handled in a gallery.","description":null},"ja":{"alt":"美術館でタブレットの取引画面を確認する女性と絵画を運ぶスタッフ","caption":"女性が美術品のそばでタブレットの投資取引データと資料を確認している。","description":null},"es":{"alt":"Mujer consulta una plataforma de inversión mientras un empleado mueve un cuadro en una galería","caption":"Una mujer revisa datos de inversión junto a una obra de arte en una galería.","description":null},"id":{"alt":"Perempuan memeriksa layar perdagangan di tablet saat petugas memindahkan lukisan di galeri","caption":"Seorang perempuan meninjau data investasi di samping karya seni dalam galeri.","description":null},"pt":{"alt":"Mulher consulta uma plataforma de negociação enquanto funcionário move quadro em galeria","caption":"Uma mulher analisa dados de investimento ao lado de uma obra de arte em uma galeria.","description":null},"zh-hant":{"alt":"女子在美術館查看平板交易畫面，工作人員在後方搬動畫作","caption":"女子在藝術品旁查看平板上的投資交易數據與文件。","description":null},"de":{"alt":"Frau prüft Handelsdaten auf einem Tablet, während ein Mitarbeiter ein Gemälde bewegt","caption":"Eine Frau betrachtet neben einem Kunstwerk Anlage- und Handelsdaten auf einem Tablet.","description":null}}},{"id":957,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MTMwNDgsInB1ciI6ImJsb2JfaWQifX0=--ce736583b319ebeff2308106eed8a4e923774879/ai-407391b6.webp","is_representative":false,"generation_method":"ai_image","license":"ai_generated","mime_type":"image/webp","translations":{"ko":{"alt":"거래소에서 미술품·부동산·음악 조각투자증권을 거래하고 분산원장에 기록하는 구조도","caption":"조각투자증권의 발행·거래·분산원장 기록과 수수료·세금 차감 후 수익 흐름을 보여준다.","description":null},"en":{"alt":"Flowchart of fractional securities for art, property and music traded on an exchange and recorded on a ledger","caption":"The diagram traces fractional-investment securities from exchange trading to ledger records and net investor returns.","description":null},"ja":{"alt":"美術品・不動産・音楽の小口投資証券を取引所で売買し分散台帳に記録する仕組み","caption":"小口投資証券の取引、分散台帳への記録、手数料や税控除後の収益までの流れを示している。","description":null},"es":{"alt":"Flujo de valores fraccionados de arte, inmuebles y música negociados en bolsa y registrados en un libro distribuido","caption":"El diagrama muestra la negociación, el registro distribuido y el retorno neto tras comisiones, impuestos y costes.","description":null},"id":{"alt":"Alur sekuritas investasi pecahan seni, properti, dan musik yang diperdagangkan di bursa dan dicatat di ledger","caption":"Diagram menunjukkan perdagangan, pencatatan ledger, serta imbal hasil bersih setelah biaya dan pajak.","description":null},"pt":{"alt":"Fluxo de títulos fracionados de arte, imóveis e música negociados em bolsa e registrados em livro distribuído","caption":"O diagrama mostra a negociação, o registro distribuído e o retorno líquido após taxas, impostos e custos.","description":null},"zh-hant":{"alt":"藝術品、房地產與音樂碎片化投資證券在交易所交易並記錄於分散式帳本的流程","caption":"圖示呈現碎片化投資證券的交易、分散式帳本記錄，以及扣除費用與稅款後的淨回報。","description":null},"de":{"alt":"Ablauf für an der Börse gehandelte und im Distributed Ledger erfasste Bruchteilwertpapiere auf Kunst, Immobilien und Musik","caption":"Die Grafik zeigt Handel, Ledger-Erfassung und die Nettorendite nach Gebühren, Steuern und Transaktionskosten.","description":null}}}],"published_at":"2026-08-29T22:28:45+09:00","updated_at":"2026-08-29T22:28:45+09:00","license":"cc_by","translation_status":"reviewed","available_locales":["ko","en","ja","es"],"data_locales":["ko","en","ja","es","id","pt","zh-hant","de"],"url":"https://injoys.com/en/articles/krx-new-securities-market-fractional-investment-sto"}