Verdict: mostly true, but with wording caveats. These are not final rules, but a draft, and KSD is building connectivity to Avalanche alongside other blockchains.

FSC and February 2027, confirmed, but this is a draft.

4 September 2026 the FSC published a three phase plan for tokenization of securities. The first phase starts 4 February 2027. Sources: CoinDesk (https://www.coindesk.com/business/2026/09/04/south-korea-targets-february-2027-rollout-for-full-tokenized-securities-market) and TechFlow (https://www.techflowpost.com/en-US/article/33773).

Amendments under which the distributed ledger becomes a legally valid ownership registry were adopted in January. This is reported by milkroaddaily (https://x.com/milkroaddaily/status/2097037945878532237). This is a social media retelling, I did not open the primary source.

CoinDesk reports that the FSC planned to submit proposals to amend subordinate regulations before the end of September.

CoinMarketCap on 2 October (18:35 UTC) wrote carefully: the FSC drafted proposed rules, that is prepared a draft, launch planned for 4 February 2027 (https://x.com/CoinMarketCap/status/2106090637456007552).

The Avalanche post (20:07 UTC, https://x.com/avax/status/2106113860948418833) says published new rules, and Cointelegraph (21:40 UTC, https://x.com/Cointelegraph/status/2106137279173431628) says unveils rules. The Avalanche wording is stronger than CoinMarketCap wording. I did not find the text of the FSC draft itself, so the Avalanche claim that the rules clearly place KSD into the infrastructure could not be verified.

The first phase covers only private products: private money market funds, bonds for institutional investors, nonpublic shares through a trust and fractional investment securities. There are no listed shares in it (milkroaddaily, CoinDesk). The wording that the whole $5 trillion stock market moves onchain is therefore exaggerated. Phases 2 and 3 (public securities and settlement in stablecoins) have no dates and depend on results of the first phase and on stablecoin legislation.

KSD and Avalanche, partly confirmed.

Seoul Economic Daily of 6 September writes in the article description that Hanwha Investment & Securities completed a token securities platform on Avalanche, and KSD is building infrastructure... (https://en.sedaily.com/finance/2026/09/06/hanwha-securities-builds-avalanche-based-token-securities). Further text on the page is cut off, so I did not see the full wording. This same article is cited by bdog_hh (https://x.com/bdog_hh/status/2096857494148600113).

Crynet and trump666eth clarify that KSD is preparing systems for several technologies: Avalanche, Hyperledger Besu and Hyperledger Fabric, and participants choose on their own (https://x.com/crynetio/status/2101059415755411642, https://x.com/trump666eth/status/2097236938172629186). These are secondary posts, Crynet is also marked as Made with AI. I did not find confirmation from KSD itself.

The Hanwha platform is dual: Avalanche for public settlement and Besu for the closed part. It was built by FairSquare Lab (trump666eth).

Bottom line: KSD is building connectivity to Avalanche is correct. KSD infrastructure on Avalanche as the sole or main blockchain base is not.

What is happening now.

Avalanche, CoinMarketCap and Cointelegraph updated the news on 2 October at the same time. This is probably a reaction to publication of the draft of subordinate regulations.

The market discusses which networks will be allowed. In replies under the CoinMarketCap post someone asked whether the draft names networks; I did not see an answer in the draft.

Phase 3 on settlement in stablecoins, according to trump666eth, stalled because of a dispute between the Bank of Korea and the FSC. This is from one social account, I did not verify it independently.

What this means. The date 4 February 2027 and the appearance of the draft are confirmed. KSD participation in multiblockchain preparation including Avalanche is also confirmed. But Avalanche as infrastructure of the country is the framing by Avalanche itself. In the draft rules, as far as could be verified, no network is named, and the launch is limited to private instruments.