This article was published on the ChosunBiz MoneyMove (MM) site at 3:56 p.m. on Sep. 25, 2025.
As financial authorities begin accepting new applications for over-the-counter exchanges (distribution platforms) for fractional investment (trust beneficiary certificates) from the 25th, LucentBlock, which operates the real estate token securities (STO) platform "Soyu", and a consortium including Korea Exchange and Koscom and major securities firms are expected to enter. The financial authorities plan to select up to two consortia, so competition is expected to be fierce.
The Financial Services Commission will accept preliminary applications for distribution platform approval for fractional investment from the day the amendment to the Enforcement Decree of the Capital Markets Act to institutionalize the fractional investment sandbox took effect until Oct. 31. Fractional investment is a securities product that securitizes assets such as real estate or music copyrights and sells them divided among many investors. On distribution platforms approved by the authorities, fractional investment securities can be bought and sold like stocks.
The important point is that the authorities will not grant platform approvals without limit. The authorities decided to cap new approvals at a maximum of two. This measure reflects consideration that the fractional investment market is still in its early stages and not large, and that too many distribution platforms could dilute liquidity. Some analysts say the authorities might initially grant approval to only one platform depending on circumstances.
The parties the industry expects to enter this approval race include a consortium led by LucentBlock, the Project Pulse (PULSE) consortium, and a consortium of Korea Exchange and Koscom. LucentBlock, which was designated as an innovative financial service (sandbox), has emphasized its experience operating a platform for three to four years and announced last month that it would become the first fintech to operate an over-the-counter exchange for fractional investment, demonstrating an aggressive approach. It is currently forming a consortium, and since it received investments in 2023 from Hana Securities and Kyobo Securities, those companies are likely to be included.
The Project Pulse consortium consists of securities firms such as Shinhan Investment, SK, and LS Securities, as well as the law firm Lee & Ko and Blockchain Global. The goal is for companies from various fields to provide an optimal blockchain-based financial distributed ledger infrastructure for issuing and distributing token securities (STO) and to offer integrated financial and legal solutions. A notable feature of this consortium is that securities firms are at its core; it is currently in talks with other securities firms and is open to additional participation.
A surprise entrant compared with the two consortia was the Korea Exchange and Koscom alliance. Although the exchange has already been designated under the sandbox and could operate an on-exchange market where fractional investment products can be traded, it reportedly decided to try the less burdensome over-the-counter market first. Koscom is touting the stability of a public institution and is seeking to recruit additional securities firms that signed STO-related memorandums of understanding, such as Kiwoom, Daishin, and Yuanta Securities Korea.
As competition to capture the early market intensifies, views differ on who the front-runners are. Some argue that the exchange–Koscom consortium, which joined late, could contribute to growing the market without being preoccupied with short-term revenue because it is an institutional actor with a public interest role. On the other hand, critics say that if a public institution is approved, it would contradict the regulatory sandbox's intent to foster nonestablishment innovation. Ultimately, there is concern that existing players might once again monopolize the market.
An industry official said, "Because everyone is sensitive, they are withholding comments about other consortia and repeating that they should focus on doing well themselves. There is a cautious atmosphere about who will apply first," adding, "In particular, since the authorities' scoring items include securities firms specialized in small and medium enterprises and fractional investment operators, there is intense behind-the-scenes competition to bring these parties into consortia."
Looking at the scoring items presented by the Financial Services Commission, it is clear that consortiums including securities firms and fractional investment operators are preferred. The reason is that multiple securities firms forming a consortium are considered advantageous for transaction support and investor acquisition. The commission also favors securities firms specializing in small and medium enterprises, and awards points if a candidate has experience operating a fractional investment distribution platform or a track record of testing computerized systems that would allow the service to start quickly.