{"content_id":"zheufxqr7a","slug":"krx-new-securities-market-fractional-investing-sto","locale":"en","schema_type":"Article","category":"trends","category_name":"Trends","title":"Differences Between the KRX New Securities Market, Fractional Investment, and STO","summary":"The Korea Exchange plans to open the New Securities Market for trading fractional investment products on November 16, 2026. This article outlines the market’s trading structure and listing requirements, its differences from token securities, how returns are calculated, and the risks investors should review.","sponsorship_disclosure":null,"author":{"name":"Injoys Editorial Team","url":"https://injoys.com/ko/about"},"key_points":["The Korea Exchange’s New Securities Market is scheduled to open as an exchange market where fractional investment securities meeting specific requirements can be traded through securities firms.","Rather than jointly owning real estate or artwork itself, fractional investors generally hold rights under securities to the income and disposal proceeds from the relevant assets.","The New Securities Market and token securities are distinct concepts: the former is a trading venue, while the latter are a method of issuance and management that records securities rights using a distributed ledger.","Investment returns depend not only on the price of the underlying asset but also on operating costs, taxes, various fees, sale terms, and trading market liquidity.","Listing or blockchain records do not guarantee the principal, asset value, or the ability to sell at the desired time."],"content_markdown":"The Korea Exchange plans to open a **New Securities Market** for fractional investment products on November 16, 2026. This market will allow high-priced assets or assets with complex rights structures, such as artwork, real estate, and music copyrights, to be securitized and traded on an exchange.\n\nHowever, describing these products as being “traded like stocks” does not mean they carry the same risks as stocks. The underlying assets may be difficult to value and trading volume may be low, while investors often hold rights defined by contracts and securities rather than the assets themselves. The schedule and requirements in this article are based on plans publicly disclosed or provided as of August 20, 2026. Before the market actually opens, investors should review the Korea Exchange’s final rules and securities firms’ notices.\n\n## Definitions of Fractional Investment and the New Securities Market\n\n**Fractional investment** is a general term for structures in which high-priced assets or income rights are divided into small units and offered to multiple investors. It is not a single legally defined product category, and the actual rights may vary according to the product’s legal form, such as investment contract securities or beneficiary certificates.\n\nThe **New Securities Market** is an exchange market where new types of securities that meet specified listing requirements can be bought and sold through the Korea Exchange. Previously, subscriptions and trading often took place within asset-specific fractional investment platforms. Once the market opens, eligible products will be tradable through securities firm accounts and the exchange’s order system.\n\n| Category | Existing Platform-Centered Trading | Planned KRX New Securities Market Structure |\n|---|---|---|\n| Trading venue | Product-specific platform or separate over-the-counter market | Korea Exchange market |\n| Access channel | Platform member account | Account with a participating securities firm |\n| Product inclusion | Determined according to each platform’s review process, regulatory exemptions, and other criteria | Exchange listing requirements and review apply |\n| Price formation | Platform-specific method | Prices formed through exchange orders |\n| Liquidity | Dependent on platform users and trading volume | Market integration effects may be expected, but trading volume is not guaranteed |\n| Recording of rights | Current electronic registration and contractual structures, among others | Initially planned to use the existing electronic securities system |\n\n## Planned Trading Structure for the November 2026 Market\n\nAccording to the proposed launch plan, the New Securities Market will open on November 16, 2026, with regular trading hours scheduled to run from 9:00 a.m. to 3:30 p.m., the same as the stock market. Because the market is expected to operate primarily through limit orders, investors will need to specify their desired prices directly.\n\nThe announced principal eligibility requirements include the following:\n\n- The product must have an issuance size of at least KRW 3 billion\n- The issuer must have equity capital of at least KRW 2 billion\n- The issuer must retain a specified portion until maturity, partially aligning its interests with those of investors\n- The product must satisfy the exchange’s disclosure, listing, and product-structure requirements\n\nThese figures may change or detailed exceptions may be added during preparations for the market opening. When deciding whether to invest, investors should give priority to the Korea Exchange’s final operating rules, listing disclosures, and prospectuses rather than summary figures in press releases.\n\nListing means that a product has met minimum formal and review requirements. It does not mean that the Korea Exchange guarantees the profitability of the underlying asset or repayment of principal.\n\n## What Do Fractional Investors Own?\n\nPurchasing fractional investment securities backed by real estate generally does not mean that the investor’s name is directly entered in the building’s property register. Depending on the product structure, investors hold all or some of the following rights:\n\n- The right to receive distributions of operating income, such as rent or royalties\n- The right to receive a distribution from the proceeds of an underlying asset’s sale after deducting expenses and senior debt\n- The right to exercise voting rights under specified conditions\n- The right to sell the securities in the market before maturity\n\nTherefore, the everyday expression “I bought 0.01% of a building” may differ from the actual legal rights involved. Investors should review the prospectus to identify the registered owner of the asset, whether it is held in trust, the role of the issuer or special-purpose vehicle, and the priority of investors’ claims.\n\n## Example of Calculating Returns and Losses\n\nSuppose an issuer issues securities backed by an office building valued at KRW 10 billion, and an investor invests KRW 1 million. The simple ratio is **0.01%, or one ten-thousandth**, calculated by dividing KRW 1 million by KRW 10 billion.\n\nIf annual rent is KRW 500 million and expenses such as maintenance costs and taxes total KRW 200 million, operating income after expenses is KRW 300 million. Under the simplified assumption that there are no other fees or distribution conditions, the investor’s annual share would be KRW 30,000.\n\n| Item | Calculation | Amount Attributable to Investor |\n|---|---:|---:|\n| Investment ratio | KRW 1 million ÷ KRW 10 billion | 0.01% |\n| Annual net operating income | KRW 500 million - KRW 200 million | KRW 300 million in total |\n| Annual income distribution | KRW 300 million × 0.01% | KRW 30,000 |\n| Distributions over 5 years | KRW 30,000 × 5 years | KRW 150,000 |\n| Assumed sale for KRW 12 billion after 5 years | KRW 12 billion × 0.01% | KRW 1.2 million |\n| Total profit relative to principal | KRW 200,000 capital gain + KRW 150,000 in distributions | KRW 350,000 |\n| Total amount recovered | KRW 1.2 million share of sale proceeds + KRW 150,000 in distributions | KRW 1.35 million |\n\nConversely, if the building is sold for KRW 8 billion, the investor’s share of the sale proceeds would fall to KRW 800,000 under a simple calculation. Even if distributions were received, the final return could be negative because of the loss on sale and fees.\n\nThis example is intended to illustrate the calculation method and does not account for vacancies, loan interest, taxes related to acquisition, ownership, or disposal, platform fees, asset management fees, sale fees, or investor taxation.\n\n## Differences Between the New Securities Market and Security Tokens\n\n**STO(Security Token Offering)** refers to the process of issuing and publicly offering securities in token form. In Korean policy, **security tokens** refer to a format that uses distributed ledger technology to record and manage rights associated with securities.\n\n| Comparison Item | KRX New Securities Market | Security Tokens·STO |\n|---|---|---|\n| Core concept | A market for trading securities | A method of issuing securities and recording rights |\n| Role | Orders, price discovery, trading, and disclosure | Distributed-ledger-based issuance, registration, and rights management |\n| Initial method of application | Trading new types of securities through the existing electronic securities system | Use of distributed ledgers that meet legal requirements |\n| Whether blockchain is required | Not an essential element | Use of a distributed ledger is a core element |\n| Investor protection | Capital market regulations, exchange rules, and disclosure | Requirements related to token issuance and management are added to securities regulations |\n\nIn other words, a **trading venue** for fractional investment securities will first be established in November 2026, while the legal framework for issuing and distributing security tokens is scheduled to take effect in February 2027 under the provided policy timeline. The two systems may be combined, but they are not the same concept.\n\nThe fact that a security is tokenized does not increase the value of the underlying asset or eliminate the risk of insolvency. Blockchain may change how records and transfers are handled, but it does not resolve appraisal errors, vacancies, declining copyright income, issuer insolvency, or conflicts of interest.\n\n## Priority of Rights and Insolvency Risks Investors May Overlook\n\nBefore considering price forecasts, investors should determine **who receives cash and in what order**. Even if the underlying asset is sold, the amount returned to investors may be less than the asset’s sale price multiplied by their simple investment ratio if loan principal and interest, taxes, maintenance expenses, trust fees, and sale costs are deducted first.\n\nThe following factors determine the product’s substantive safety:\n\n1. Confirm who holds title to the underlying asset.\n2. Confirm whether the underlying asset is separated from the property available to general creditors if the issuer becomes insolvent.\n3. Confirm the amount of secured loans and senior claims, as well as their repayment priority.\n4. Confirm who has the authority to decide on the asset’s sale and the voting conditions for investors.\n5. Confirm the appraisal institution, valuation date, and any conflicts of interest.\n6. Confirm whether insurance or other safeguards cover asset-specific incidents such as fire, damage, or copyright disputes.\n\nThese rights structures do not become identical merely because products are listed on an exchange. Even among fractional real estate investments, risks may differ substantially depending on trust arrangements, loans, maturity, and cost structures.\n\n## Fees and Liquidity Risks\n\nFractional investment products may be subject to asset acquisition and structuring fees, issuance fees, trading fees, asset management fees, trust fees, and sale fees. Investors should compare net returns after all costs rather than the underlying asset yield shown in advertisements.\n\nOpening an exchange market increases the available channels for selling, but it does not guarantee liquidity. If there are too few buy orders, the following problems may arise:\n\n- Investors may be unable to sell when they want.\n- Investors who need to sell quickly may have to accept a price below the appraised value.\n- If there have been no recent trades, the reference price shown on the screen may not reflect the asset’s current value.\n- Orders may become concentrated in a small number of products, increasing price volatility.\n\nIn a market where only limit orders are available, the spread between bid and ask prices may function as an actual trading cost.\n\n## How to Read Market Size Figures\n\nThe provided materials estimate the cumulative size of Korea’s fractional investment market at approximately KRW 640 billion, with music copyrights accounting for approximately two-thirds of the total and the secondary market estimated at approximately KRW 14.5 billion. However, market size may vary substantially depending on the reference date and scope of inclusion. When citing these figures, the survey date and definitions used in the original statistics should also be reviewed.\n\n| Statistical Concept | Meaning | Points to Note |\n|---|---|---|\n| Cumulative amount raised or issued | Total amount raised from investors to date | May differ from the current value of remaining assets |\n| Value of assets under management | Appraised value of underlying assets currently under management | Appraised value may differ from the actual sale price |\n| Secondary-market trading value | Amount traded between investors over a specified period | Difficult to compare directly with cumulative issuance |\n| Overseas market size | Total related market as defined by the research institution | Scope varies depending on whether fractional-share trading is included |\n\nIf overseas fractional investment figures include fractional-share trading while Korean figures include only non-standardized assets, the comparison does not use equivalent criteria. When assessing market prospects, it is more accurate to consider the number of products, actual trading value, number of investors, maturity repayment performance, and loss cases together rather than focusing only on monetary amounts.\n\n## Significance and Limitations of Opening the New Securities Market\n\nIf the exchange market becomes established, it may standardize disclosure and trading procedures for products previously separated across different platforms and create a foundation for investors to compare multiple products through securities firm accounts. For issuers, it broadens the channels for securitizing rights that have been difficult to structure as traditional stocks or bonds, including real estate, artwork, music income rights, and intellectual property rights.\n\nOn the other hand, the number of listed products and participating securities firms may initially be small, and trading volume may also be limited. Because over-the-counter fractional investment markets and the exchange market may coexist, investors should verify whether the trading venue is an authorized market and where the same product can be sold.\n\nIntegration into the regulated financial system raises the level of disclosure and supervision, but it does not automatically distinguish good assets from bad ones. The key to the final investment decision is not whether the product is described as a token or exchange-listed, but rather the **underlying asset’s cash flow, priority of rights, total costs, and actual tradability**.","content_html":"\u003cp\u003eThe Korea Exchange plans to open a \u003cstrong\u003eNew Securities Market\u003c/strong\u003e for fractional investment products on November 16, 2026. This market will allow high-priced assets or assets with complex rights structures, such as artwork, real estate, and music copyrights, to be securitized and traded on an exchange.\u003c/p\u003e\n\u003cp\u003eHowever, describing these products as being “traded like stocks” does not mean they carry the same risks as stocks. The underlying assets may be difficult to value and trading volume may be low, while investors often hold rights defined by contracts and securities rather than the assets themselves. The schedule and requirements in this article are based on plans publicly disclosed or provided as of August 20, 2026. Before the market actually opens, investors should review the Korea Exchange’s final rules and securities firms’ notices.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#definitions-of-fractional-investment-and-the-new-securities-market\" class=\"anchor\" id=\"definitions-of-fractional-investment-and-the-new-securities-market\"\u003e\u003c/a\u003eDefinitions of Fractional Investment and the New Securities Market\u003c/h2\u003e\n\u003cp\u003e\u003cstrong\u003eFractional investment\u003c/strong\u003e is a general term for structures in which high-priced assets or income rights are divided into small units and offered to multiple investors. It is not a single legally defined product category, and the actual rights may vary according to the product’s legal form, such as investment contract securities or beneficiary certificates.\u003c/p\u003e\n\u003cp\u003eThe \u003cstrong\u003eNew Securities Market\u003c/strong\u003e is an exchange market where new types of securities that meet specified listing requirements can be bought and sold through the Korea Exchange. Previously, subscriptions and trading often took place within asset-specific fractional investment platforms. Once the market opens, eligible products will be tradable through securities firm accounts and the exchange’s order system.\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\u003eExisting Platform-Centered Trading\u003c/th\u003e\n\u003cth\u003ePlanned KRX New Securities Market Structure\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eTrading venue\u003c/td\u003e\n\u003ctd data-label=\"Existing Platform-Centered Trading\"\u003eProduct-specific platform or separate over-the-counter market\u003c/td\u003e\n\u003ctd data-label=\"Planned KRX New Securities Market Structure\"\u003eKorea Exchange market\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eAccess channel\u003c/td\u003e\n\u003ctd data-label=\"Existing Platform-Centered Trading\"\u003ePlatform member account\u003c/td\u003e\n\u003ctd data-label=\"Planned KRX New Securities Market Structure\"\u003eAccount with a participating securities firm\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eProduct inclusion\u003c/td\u003e\n\u003ctd data-label=\"Existing Platform-Centered Trading\"\u003eDetermined according to each platform’s review process, regulatory exemptions, and other criteria\u003c/td\u003e\n\u003ctd data-label=\"Planned KRX New Securities Market Structure\"\u003eExchange listing requirements and review apply\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003ePrice formation\u003c/td\u003e\n\u003ctd data-label=\"Existing Platform-Centered Trading\"\u003ePlatform-specific method\u003c/td\u003e\n\u003ctd data-label=\"Planned KRX New Securities Market Structure\"\u003ePrices formed through exchange orders\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eLiquidity\u003c/td\u003e\n\u003ctd data-label=\"Existing Platform-Centered Trading\"\u003eDependent on platform users and trading volume\u003c/td\u003e\n\u003ctd data-label=\"Planned KRX New Securities Market Structure\"\u003eMarket integration effects may be expected, but trading volume is not guaranteed\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eRecording of rights\u003c/td\u003e\n\u003ctd data-label=\"Existing Platform-Centered Trading\"\u003eCurrent electronic registration and contractual structures, among others\u003c/td\u003e\n\u003ctd data-label=\"Planned KRX New Securities Market Structure\"\u003eInitially planned to use the existing electronic securities system\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003ch2\u003e\n\u003ca href=\"#planned-trading-structure-for-the-november-2026-market\" class=\"anchor\" id=\"planned-trading-structure-for-the-november-2026-market\"\u003e\u003c/a\u003ePlanned Trading Structure for the November 2026 Market\u003c/h2\u003e\n\u003cp\u003eAccording to the proposed launch plan, the New Securities Market will open on November 16, 2026, with regular trading hours scheduled to run from 9:00 a.m. to 3:30 p.m., the same as the stock market. Because the market is expected to operate primarily through limit orders, investors will need to specify their desired prices directly.\u003c/p\u003e\n\u003cp\u003eThe announced principal eligibility requirements include the following:\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eThe product must have an issuance size of at least KRW 3 billion\u003c/li\u003e\n\u003cli\u003eThe issuer must have equity capital of at least KRW 2 billion\u003c/li\u003e\n\u003cli\u003eThe issuer must retain a specified portion until maturity, partially aligning its interests with those of investors\u003c/li\u003e\n\u003cli\u003eThe product must satisfy the exchange’s disclosure, listing, and product-structure requirements\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eThese figures may change or detailed exceptions may be added during preparations for the market opening. When deciding whether to invest, investors should give priority to the Korea Exchange’s final operating rules, listing disclosures, and prospectuses rather than summary figures in press releases.\u003c/p\u003e\n\u003cp\u003eListing means that a product has met minimum formal and review requirements. It does not mean that the Korea Exchange guarantees the profitability of the underlying asset or repayment of principal.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#what-do-fractional-investors-own\" class=\"anchor\" id=\"what-do-fractional-investors-own\"\u003e\u003c/a\u003eWhat Do Fractional Investors Own?\u003c/h2\u003e\n\u003cp\u003ePurchasing fractional investment securities backed by real estate generally does not mean that the investor’s name is directly entered in the building’s property register. Depending on the product structure, investors hold all or some of the following rights:\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eThe right to receive distributions of operating income, such as rent or royalties\u003c/li\u003e\n\u003cli\u003eThe right to receive a distribution from the proceeds of an underlying asset’s sale after deducting expenses and senior debt\u003c/li\u003e\n\u003cli\u003eThe right to exercise voting rights under specified conditions\u003c/li\u003e\n\u003cli\u003eThe right to sell the securities in the market before maturity\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eTherefore, the everyday expression “I bought 0.01% of a building” may differ from the actual legal rights involved. Investors should review the prospectus to identify the registered owner of the asset, whether it is held in trust, the role of the issuer or special-purpose vehicle, and the priority of investors’ claims.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#example-of-calculating-returns-and-losses\" class=\"anchor\" id=\"example-of-calculating-returns-and-losses\"\u003e\u003c/a\u003eExample of Calculating Returns and Losses\u003c/h2\u003e\n\u003cp\u003eSuppose an issuer issues securities backed by an office building valued at KRW 10 billion, and an investor invests KRW 1 million. The simple ratio is \u003cstrong\u003e0.01%, or one ten-thousandth\u003c/strong\u003e, calculated by dividing KRW 1 million by KRW 10 billion.\u003c/p\u003e\n\u003cp\u003eIf annual rent is KRW 500 million and expenses such as maintenance costs and taxes total KRW 200 million, operating income after expenses is KRW 300 million. Under the simplified assumption that there are no other fees or distribution conditions, the investor’s annual share would be 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\u003eCalculation\u003c/th\u003e\n\u003cth\u003eAmount Attributable to Investor\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item\"\u003eInvestment ratio\u003c/td\u003e\n\u003ctd data-label=\"Calculation\"\u003eKRW 1 million ÷ KRW 10 billion\u003c/td\u003e\n\u003ctd data-label=\"Amount Attributable to Investor\"\u003e0.01%\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item\"\u003eAnnual net operating income\u003c/td\u003e\n\u003ctd data-label=\"Calculation\"\u003eKRW 500 million - KRW 200 million\u003c/td\u003e\n\u003ctd data-label=\"Amount Attributable to Investor\"\u003eKRW 300 million in total\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item\"\u003eAnnual income distribution\u003c/td\u003e\n\u003ctd data-label=\"Calculation\"\u003eKRW 300 million × 0.01%\u003c/td\u003e\n\u003ctd data-label=\"Amount Attributable to Investor\"\u003eKRW 30,000\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item\"\u003eDistributions over 5 years\u003c/td\u003e\n\u003ctd data-label=\"Calculation\"\u003eKRW 30,000 × 5 years\u003c/td\u003e\n\u003ctd data-label=\"Amount Attributable to Investor\"\u003eKRW 150,000\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item\"\u003eAssumed sale for KRW 12 billion after 5 years\u003c/td\u003e\n\u003ctd data-label=\"Calculation\"\u003eKRW 12 billion × 0.01%\u003c/td\u003e\n\u003ctd data-label=\"Amount Attributable to Investor\"\u003eKRW 1.2 million\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item\"\u003eTotal profit relative to principal\u003c/td\u003e\n\u003ctd data-label=\"Calculation\"\u003eKRW 200,000 capital gain + KRW 150,000 in distributions\u003c/td\u003e\n\u003ctd data-label=\"Amount Attributable to Investor\"\u003eKRW 350,000\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=\"Calculation\"\u003eKRW 1.2 million share of sale proceeds + KRW 150,000 in distributions\u003c/td\u003e\n\u003ctd data-label=\"Amount Attributable to Investor\"\u003eKRW 1.35 million\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eConversely, if the building is sold for KRW 8 billion, the investor’s share of the sale proceeds would fall to KRW 800,000 under a simple calculation. Even if distributions were received, the final return could be negative because of the loss on sale and fees.\u003c/p\u003e\n\u003cp\u003eThis example is intended to illustrate the calculation method and does not account for vacancies, loan interest, taxes related to acquisition, ownership, or disposal, platform fees, asset management fees, sale fees, or investor taxation.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#differences-between-the-new-securities-market-and-security-tokens\" class=\"anchor\" id=\"differences-between-the-new-securities-market-and-security-tokens\"\u003e\u003c/a\u003eDifferences Between the New Securities Market and Security Tokens\u003c/h2\u003e\n\u003cp\u003e\u003cstrong\u003eSTO(Security Token Offering)\u003c/strong\u003e refers to the process of issuing and publicly offering securities in token form. In Korean policy, \u003cstrong\u003esecurity tokens\u003c/strong\u003e refer to a format that uses distributed ledger technology to record and manage rights associated with securities.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eComparison Item\u003c/th\u003e\n\u003cth\u003eKRX New Securities Market\u003c/th\u003e\n\u003cth\u003eSecurity Tokens·STO\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison Item\"\u003eCore concept\u003c/td\u003e\n\u003ctd data-label=\"KRX New Securities Market\"\u003eA market for trading securities\u003c/td\u003e\n\u003ctd data-label=\"Security Tokens·STO\"\u003eA method of issuing securities and recording rights\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison Item\"\u003eRole\u003c/td\u003e\n\u003ctd data-label=\"KRX New Securities Market\"\u003eOrders, price discovery, trading, and disclosure\u003c/td\u003e\n\u003ctd data-label=\"Security Tokens·STO\"\u003eDistributed-ledger-based issuance, registration, and rights management\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison Item\"\u003eInitial method of application\u003c/td\u003e\n\u003ctd data-label=\"KRX New Securities Market\"\u003eTrading new types of securities through the existing electronic securities system\u003c/td\u003e\n\u003ctd data-label=\"Security Tokens·STO\"\u003eUse of distributed ledgers that meet legal requirements\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison Item\"\u003eWhether blockchain is required\u003c/td\u003e\n\u003ctd data-label=\"KRX New Securities Market\"\u003eNot an essential element\u003c/td\u003e\n\u003ctd data-label=\"Security Tokens·STO\"\u003eUse of a distributed ledger is a core element\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison Item\"\u003eInvestor protection\u003c/td\u003e\n\u003ctd data-label=\"KRX New Securities Market\"\u003eCapital market regulations, exchange rules, and disclosure\u003c/td\u003e\n\u003ctd data-label=\"Security Tokens·STO\"\u003eRequirements related to token issuance and management are added to securities regulations\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eIn other words, a \u003cstrong\u003etrading venue\u003c/strong\u003e for fractional investment securities will first be established in November 2026, while the legal framework for issuing and distributing security tokens is scheduled to take effect in February 2027 under the provided policy timeline. The two systems may be combined, but they are not the same concept.\u003c/p\u003e\n\u003cp\u003eThe fact that a security is tokenized does not increase the value of the underlying asset or eliminate the risk of insolvency. Blockchain may change how records and transfers are handled, but it does not resolve appraisal errors, vacancies, declining copyright income, issuer insolvency, or conflicts of interest.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#priority-of-rights-and-insolvency-risks-investors-may-overlook\" class=\"anchor\" id=\"priority-of-rights-and-insolvency-risks-investors-may-overlook\"\u003e\u003c/a\u003ePriority of Rights and Insolvency Risks Investors May Overlook\u003c/h2\u003e\n\u003cp\u003eBefore considering price forecasts, investors should determine \u003cstrong\u003ewho receives cash and in what order\u003c/strong\u003e. Even if the underlying asset is sold, the amount returned to investors may be less than the asset’s sale price multiplied by their simple investment ratio if loan principal and interest, taxes, maintenance expenses, trust fees, and sale costs are deducted first.\u003c/p\u003e\n\u003cp\u003eThe following factors determine the product’s substantive safety:\u003c/p\u003e\n\u003col\u003e\n\u003cli\u003eConfirm who holds title to the underlying asset.\u003c/li\u003e\n\u003cli\u003eConfirm whether the underlying asset is separated from the property available to general creditors if the issuer becomes insolvent.\u003c/li\u003e\n\u003cli\u003eConfirm the amount of secured loans and senior claims, as well as their repayment priority.\u003c/li\u003e\n\u003cli\u003eConfirm who has the authority to decide on the asset’s sale and the voting conditions for investors.\u003c/li\u003e\n\u003cli\u003eConfirm the appraisal institution, valuation date, and any conflicts of interest.\u003c/li\u003e\n\u003cli\u003eConfirm whether insurance or other safeguards cover asset-specific incidents such as fire, damage, or copyright disputes.\u003c/li\u003e\n\u003c/ol\u003e\n\u003cp\u003eThese rights structures do not become identical merely because products are listed on an exchange. Even among fractional real estate investments, risks may differ substantially depending on trust arrangements, loans, maturity, and cost structures.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#fees-and-liquidity-risks\" class=\"anchor\" id=\"fees-and-liquidity-risks\"\u003e\u003c/a\u003eFees and Liquidity Risks\u003c/h2\u003e\n\u003cp\u003eFractional investment products may be subject to asset acquisition and structuring fees, issuance fees, trading fees, asset management fees, trust fees, and sale fees. Investors should compare net returns after all costs rather than the underlying asset yield shown in advertisements.\u003c/p\u003e\n\u003cp\u003eOpening an exchange market increases the available channels for selling, but it does not guarantee liquidity. If there are too few buy orders, the following problems may arise:\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eInvestors may be unable to sell when they want.\u003c/li\u003e\n\u003cli\u003eInvestors who need to sell quickly may have to accept a price below the appraised value.\u003c/li\u003e\n\u003cli\u003eIf there have been no recent trades, the reference price shown on the screen may not reflect the asset’s current value.\u003c/li\u003e\n\u003cli\u003eOrders may become concentrated in a small number of products, increasing price volatility.\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eIn a market where only limit orders are available, the spread between bid and ask prices may function as an actual trading cost.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#how-to-read-market-size-figures\" class=\"anchor\" id=\"how-to-read-market-size-figures\"\u003e\u003c/a\u003eHow to Read Market Size Figures\u003c/h2\u003e\n\u003cp\u003eThe provided materials estimate the cumulative size of Korea’s fractional investment market at approximately KRW 640 billion, with music copyrights accounting for approximately two-thirds of the total and the secondary market estimated at approximately KRW 14.5 billion. However, market size may vary substantially depending on the reference date and scope of inclusion. When citing these figures, the survey date and definitions used in the original statistics should also be reviewed.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eStatistical Concept\u003c/th\u003e\n\u003cth\u003eMeaning\u003c/th\u003e\n\u003cth\u003ePoints to Note\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Statistical Concept\"\u003eCumulative amount raised or issued\u003c/td\u003e\n\u003ctd data-label=\"Meaning\"\u003eTotal amount raised from investors to date\u003c/td\u003e\n\u003ctd data-label=\"Points to Note\"\u003eMay differ from the current value of remaining assets\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Statistical Concept\"\u003eValue of assets under management\u003c/td\u003e\n\u003ctd data-label=\"Meaning\"\u003eAppraised value of underlying assets currently under management\u003c/td\u003e\n\u003ctd data-label=\"Points to Note\"\u003eAppraised value may differ from the actual sale price\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Statistical Concept\"\u003eSecondary-market trading value\u003c/td\u003e\n\u003ctd data-label=\"Meaning\"\u003eAmount traded between investors over a specified period\u003c/td\u003e\n\u003ctd data-label=\"Points to Note\"\u003eDifficult to compare directly with cumulative issuance\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Statistical Concept\"\u003eOverseas market size\u003c/td\u003e\n\u003ctd data-label=\"Meaning\"\u003eTotal related market as defined by the research institution\u003c/td\u003e\n\u003ctd data-label=\"Points to Note\"\u003eScope varies depending on whether fractional-share trading is included\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eIf overseas fractional investment figures include fractional-share trading while Korean figures include only non-standardized assets, the comparison does not use equivalent criteria. When assessing market prospects, it is more accurate to consider the number of products, actual trading value, number of investors, maturity repayment performance, and loss cases together rather than focusing only on monetary amounts.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#significance-and-limitations-of-opening-the-new-securities-market\" class=\"anchor\" id=\"significance-and-limitations-of-opening-the-new-securities-market\"\u003e\u003c/a\u003eSignificance and Limitations of Opening the New Securities Market\u003c/h2\u003e\n\u003cp\u003eIf the exchange market becomes established, it may standardize disclosure and trading procedures for products previously separated across different platforms and create a foundation for investors to compare multiple products through securities firm accounts. For issuers, it broadens the channels for securitizing rights that have been difficult to structure as traditional stocks or bonds, including real estate, artwork, music income rights, and intellectual property rights.\u003c/p\u003e\n\u003cp\u003eOn the other hand, the number of listed products and participating securities firms may initially be small, and trading volume may also be limited. Because over-the-counter fractional investment markets and the exchange market may coexist, investors should verify whether the trading venue is an authorized market and where the same product can be sold.\u003c/p\u003e\n\u003cp\u003eIntegration into the regulated financial system raises the level of disclosure and supervision, but it does not automatically distinguish good assets from bad ones. The key to the final investment decision is not whether the product is described as a token or exchange-listed, but rather the \u003cstrong\u003eunderlying asset’s cash flow, priority of rights, total costs, and actual tradability\u003c/strong\u003e.\u003c/p\u003e\n","tags":["Diversification","Asset allocation","Investor psychology","Fractional investing","Tokenized securities"],"faqs":[{"question":"When will the Korea Exchange's new types of securities market open?","answer":"It is scheduled to open on November 16, 2026. However, the opening schedule, participating securities firms, and eligible securities may change, so you should check the final announcements from the Korea Exchange and your securities firm before the market opens."},{"question":"Am I buying the artwork or building itself in the new types of securities market?","answer":"In most cases, you are buying rights under a security to receive distributions of rent, royalties, or sale proceeds, rather than direct ownership of the underlying asset itself. The exact ownership and distribution rights should be confirmed in the product's prospectus and trust agreement."},{"question":"Are the new types of securities market and STO the same system?","answer":"No. The new types of securities market is a venue for buying and selling securities, while STO refers to the process of issuing token securities using a distributed ledger. Products issued through the existing electronic securities system may also be traded in the new types of securities market."},{"question":"Is my principal guaranteed if a product is listed on the Korea Exchange?","answer":"No. You may lose principal due to a decline in the underlying asset's price, reduced income, issuer insolvency, high costs, or insufficient liquidity, and listing does not guarantee profitability."},{"question":"Can fractional investment products be sold immediately at any time?","answer":"You can place a sell order, but it will not be executed unless there is a matching buy order. Products with low trading volume may remain unsold for an extended period, or you may have to sell them below their appraised value."},{"question":"How are returns on fractional real estate investments calculated?","answer":"Management expenses, interest, taxes, asset management fees, and other fees are deducted from total income, such as rent, and then the investor distribution ratio is applied. At maturity, senior debt and disposal costs must first be deducted from the proceeds of the asset sale."},{"question":"Are token securities the same as virtual assets?","answer":"No. Regardless of their form, token securities are rights that qualify as securities under the Financial Investment Services and Capital Markets Act and are recorded on a distributed ledger. Unlike ordinary virtual assets, they are subject to regulations governing the issuance, disclosure, and sale of securities."},{"question":"What should I look at first when comparing fractional investment products?","answer":"You should first review the underlying asset's cash flow, the investor's legal rights, senior debt, maturity and sale conditions, total fees, and recent trading volume. Comparing only the stated rates of return may overstate actual gains or losses."}],"sources":[{"url":"https://www.krx.co.kr/main/main.jsp","title":"Korea Exchange","type":"source"},{"url":"https://rule.krx.co.kr/","title":"Korea Exchange Legal Information Service","type":"source"},{"url":"https://www.fsc.go.kr/","title":"Financial Services Commission","type":"source"},{"url":"https://www.law.go.kr/","title":"Korean Law Information Center","type":"source"}],"images":[{"id":797,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MTAyOTgsInB1ciI6ImJsb2JfaWQifX0=--68e323b60940c142be5f9080ddbbe97a5409a924/ai-6ff1147d.webp","is_representative":true,"generation_method":"ai_photo","license":"ai_generated","mime_type":"image/webp","translations":{"ko":{"alt":"전시 공간에서 시세 화면이 표시된 태블릿을 조작하는 여성","caption":"한 여성이 미술품과 건축 모형 앞에서 태블릿으로 거래 정보를 확인하고 있다.","description":null},"en":{"alt":"Woman using a tablet with market data in a gallery-like exhibition space","caption":"A woman checks trading data beside displayed artwork and an architectural model.","description":null},"ja":{"alt":"展示空間で相場情報を表示したタブレットを操作する女性","caption":"女性が美術作品と建築模型の前でタブレットの取引情報を確認している。","description":null},"es":{"alt":"Mujer usando una tableta con datos de mercado en una sala de exposición","caption":"Una mujer consulta datos de negociación junto a una obra de arte y una maqueta arquitectónica.","description":null},"id":{"alt":"Perempuan menggunakan tablet berisi data pasar di ruang pameran","caption":"Seorang perempuan memeriksa data perdagangan di dekat karya seni dan maket bangunan.","description":null},"pt":{"alt":"Mulher usando tablet com dados de mercado em um espaço de exposição","caption":"Uma mulher consulta dados de negociação ao lado de uma obra de arte e uma maquete arquitetônica.","description":null},"zh-hant":{"alt":"女子在展覽空間操作顯示市場數據的平板電腦","caption":"一名女子在藝術品與建築模型旁查看平板電腦上的交易資訊。","description":null},"de":{"alt":"Frau bedient ein Tablet mit Marktdaten in einem Ausstellungsraum","caption":"Eine Frau prüft neben einem Kunstwerk und einem Architekturmodell Handelsdaten auf einem Tablet.","description":null}}},{"id":798,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MTAzMDQsInB1ciI6ImJsb2JfaWQifX0=--16762533fb71560be36a9740c292012d72605d4e/ai-6df2dcf5.webp","is_representative":false,"generation_method":"ai_image","license":"ai_generated","mime_type":"image/webp","translations":{"ko":{"alt":"실물 자산 증권이 규제 거래소를 거쳐 토큰화·분산원장으로 연결되는 구조도","caption":"부동산·미술품·음반의 증권화부터 거래, 토큰 발행, 투자 위험까지의 흐름을 보여준다.","description":null},"en":{"alt":"Flowchart linking real-asset securities to a regulated marketplace, tokenization and a distributed ledger","caption":"The diagram traces property, art and record securities through trading, token issuance, costs and investor risks.","description":null},"ja":{"alt":"実物資産の証券が規制市場を経てトークン化・分散型台帳につながる仕組み図","caption":"不動産、美術品、レコードの証券化から取引、トークン発行、投資リスクまでの流れを示している。","description":null},"es":{"alt":"Diagrama de valores de activos reales conectados con un mercado regulado, tokens y un registro distribuido","caption":"El gráfico muestra la titulización, negociación y tokenización de inmuebles, arte y discos, junto con costes y riesgos.","description":null},"id":{"alt":"Bagan sekuritas aset riil yang terhubung ke pasar teregulasi, tokenisasi, dan buku besar terdistribusi","caption":"Diagram menunjukkan alur properti, karya seni, dan rekaman dari sekuritisasi hingga perdagangan, biaya, dan risiko.","description":null},"pt":{"alt":"Fluxograma de títulos de ativos reais ligados a mercado regulado, tokenização e registro distribuído","caption":"O gráfico mostra imóveis, obras de arte e discos passando por securitização, negociação, custos e riscos.","description":null},"zh-hant":{"alt":"實體資產證券經監管交易市場連接代幣化與分散式帳本的流程圖","caption":"圖表呈現房地產、藝術品與唱片從證券化、交易到代幣發行、成本及投資風險的流程。","description":null},"de":{"alt":"Schaubild zu Sachwertpapieren, reguliertem Handelsplatz, Tokenisierung und Distributed Ledger","caption":"Die Grafik zeigt Immobilien, Kunst und Schallplatten von der Verbriefung über den Handel bis zu Kosten und Risiken.","description":null}}}],"published_at":"2026-08-20T17:03:06+09:00","updated_at":"2026-08-20T17:03:06+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-investing-sto"}