Vice Chairman Kwon Dae-young of the Financial Services Commission presided over the third joint consultative body meeting on security token with officials from related organizations, industry groups, and private sector experts on September 4. At today's meeting, officials discussed key policy directions on security token, which include promoting the establishment of digital securities infrastructures (ultimately aiming for a completely on-chain infrastructure for the payment and settlement of securities), setting specific rules for investing in fractional investment products (e.g. pooling of underlying assets, investor protection measures, etc.), introducing standards for over-the-counter transactions of tokenized securities, and adopting a standardized set of requirements and guidelines on distributed ledger to ensure stability. Speaking about the need to expand the tokenization of securities for more than just fractional investment products, Vice Chairman Kwon said that authorities will seek to lay foundations to facilitate the tokenized issuance and circulation of more traditional types of securities including stocks, bonds, and funds with an ultimate goal of completely transforming and upgrading capital market infrastructures for digital connectivity.