Seoul, January 14, 2026, 18:32 (KST)
- Reports said South Korea’s FSC held off on deciding about preliminary licenses for an STO-focused OTC marketplace at its Jan. 14 meeting.
- Startup Lucentblock claims it was unfairly sidelined and accuses Nextrade of misusing information shared under an NDA; Nextrade denies any misconduct.
- These licences will determine the operators of the country’s first regulated trading platforms for tokenised securities.
South Korea’s financial regulator delayed its decision on preliminary licences for new over-the-counter marketplaces for tokenised securities on Wednesday. The move came amid public disagreements over the approval process, according to reports and industry sources. 1
South Korea has taken a crucial step toward integrating security token offerings (STOs)—digital securities tracked on blockchain—into its regulated financial system, following years of pilot programs. Proponents argue this will open the door for small investors to buy fractions of assets like real estate, music copyrights, and art, instead of needing to purchase entire properties or full rights. 2
The Financial Services Commission (FSC) was set to pick up to two preliminary winners from three contenders: consortia headed by Korea Exchange-Koscom (KDX), alternative trading platform operator Nextrade (NXT), and a group led by Lucentblock. The decision’s delay leaves the ranking unsettled and ramps up pressure on Lucentblock, which has cautioned it might have to shut down if excluded.
Lucentblock, operating a real estate fractional investment platform within the regulator’s sandbox programme, claims first movers are being sidelined now that formal licenses are rolling out. CEO Huh Se-young said, “I felt abandoned after serving as a government test case.”
The company claims Nextrade misused information received under a non-disclosure agreement, alleging it was pitched as a potential investor or partner before swiftly filing for the same business line. Lucentblock says the shared data covered internal financial and technical specifics.
Nextrade has dismissed the allegations, calling the complaint an effort to disrupt the licensing process. “We have disclosed the full list and volume of the materials received,” the company said, stressing that the final approval lies with financial authorities.
The dispute has expanded into a broader debate over whether the FSC is prioritizing innovation or institutional clout. According to local media, the regulator’s official criteria emphasize licensing under the Capital Markets Act, giving additional points for consortium composition and launch preparedness. An FSC spokesperson added, “No conclusion has been reached yet.” 3
NXT’s team insists it isn’t an exclusive circle dominated by big finance, highlighting involvement from fractional investment firms like Musicow, Sejong DX, Stock Keeper, and Together Art, alongside a wider mix of securities and finance companies. Lucentblock, on the other hand, presents itself as a single-startup consortium and argues this shouldn’t be viewed as a disadvantage.
But the longer the standoff drags on, the greater the risk to the market’s rollout. Musicow flagged this week that “If this controversy causes the market’s opening to be postponed, the damage will not be limited to one company,” casting the delay as a threat to the entire fractional investment sector. 4
Legal experts warn the dispute threatens South Korea’s regulatory sandbox promise — where tested concepts can earn permanent licenses — instead of serving as free market research for better-funded players. Attorney Hee-chul Ahn of DLG Law Firm described the sandbox as “a national commitment to commercialization for innovative companies.” 5
