A view of the Korea Exchange (KRX) headquarters in Yeouido, Seoul. (Yonhap)
SEOUL, Oct. 30 (Korea Bizwire) — A fierce contest has erupted among major financial institutions and fintech startups in South Korea as they vie for preliminary approval to operate the country’s first licensed trading platforms for fractional investments.
According to industry sources, three consortiums have submitted applications ahead of the October 31 deadline, with the Financial Services Commission expected to select up to two operators.
The platforms will allow investors to trade fractional shares of nontraditional assets such as real estate, art, music royalties, and even livestock—financial products that have drawn growing attention but until now lacked an official marketplace.
The largest contender is a consortium led by the Korea Exchange (KRX) and Koscom, joined by about 20 firms including Mirae Asset Securities, KB Securities, Hana Securities, Meritz Securities, Hanwha Investment & Securities, and fractional-investment startup BuySellStandards.
NextTrade (NXT), which operates a popular alternative trading system that enables pre- and after-hours stock trading, has formed its own consortium with Samsung Securities, Shinhan Investment & Securities, and music rights trading firm Musicow.
A third bid is being led by Lucent Block, a real estate fractional investment platform, in partnership with Korea Investment & Securities, Hana Securities, Kyobo Securities, and IBK Investment & Securities.
Analysts see the race as a “one-strong, one-middle, one-weak” structure—KRX at the front, NXT in pursuit, and Lucent Block as an underdog.
The licensing process has drawn unusually intense interest because the chosen platforms are expected to shape the future of South Korea’s fast-emerging market for “tokenized securities.”
These digital instruments, built on blockchain technology, are viewed as a bridge between traditional finance and next-generation digital assets. Legislation to legalize their use is expected to pass in the National Assembly later this year.
Fractional Investing Becomes New Front in Korea’s Fintech Transformation (Image courtesy of Yonhap)
The winners of the current licensing round could therefore gain a decisive edge in both the fractional investment and tokenized securities markets.
The competition has not been without controversy. NXT was initially in talks to join Lucent Block’s consortium before deciding to go it alone, prompting allegations that it had leveraged the startup’s early business ideas. A separate team comprising Shinhan, SK, and LS Securities reportedly failed to file after internal disagreements.
Some critics question whether large incumbents like KRX and NXT should dominate a sector originally intended to nurture financial innovation. Others counter that established exchanges could bring much-needed transparency, disclosure standards, and investor protection to a young and often unregulated space.
To address concerns about fairness, KRX is said to have reduced its planned ownership stake in its consortium, allowing participating securities firms to become joint majority shareholders.
As one industry executive put it, “This race isn’t just about who wins a license—it’s about who defines the future architecture of digital finance in Korea.”
Ashley Song (ashley@koreabizwire.com)
