27th August 2026
By Shubhii Verma
Korean companies are increasingly turning to Hong Kong to issue digital bonds, highlighting the growing gap between the country’s appetite for blockchain-based financial products and its domestic regulatory infrastructure.
Korean Companies Are Driving the Digital Bond Adoption Trend
In 2026, Korea has recorded several digital bond milestones involving companies and financial institutions from different sectors. Mirae Asset Securities, POSCO International, Korea Housing Finance Corporation and KB Kookmin Bank have all issued digital bonds in Hong Kong, rather than using Korea’s domestic market.
Hong Kong’s established digital-asset infrastructure and supportive regulatory environment have made it an attractive launchpad for Korean issuers seeking to explore tokenised securities and blockchain-based bonds.
Major Digital Bond Issuances by Korean Companies in Hong Kong
Mirae Asset Securities started the trend in January with a one-year multicurrency digital bond worth $41.4 million and $30 million. POSCO International followed in April with a three-year, $99.5 million issuance. Korea Housing Finance Corporation issued a two-year, $200 million digital bond in May, while KB Kookmin Bank completed a two-year, $100 million issuance in June.
All four deals were arranged by HSBC and used its Orion tokenisation platform, which is connected to Hong Kong’s financial settlement infrastructure.
How Blockchain Technology Is Transforming Traditional Bond Markets
Digital bonds use blockchain or distributed-ledger technology to streamline processes including issuance, distribution, administration and settlement. Compared with conventional offshore Korean bonds, which can take around five business days to settle after pricing, digital bonds can reduce the settlement period to approximately three days.
The technology can also potentially lower issuance costs. According to the Hong Kong Monetary Authority (HKMA), digital bonds can reduce total issuance costs by an average of around one percentage point.
Why Global Investors Are Interested in Tokenised Securities
For Korean companies, the appeal extends beyond faster settlement. Korea’s export-driven economy creates significant demand for foreign-currency financing, making access to international investors particularly important. POSCO International, for example, has said that digital bond issuance helped shorten its funding cycle and broaden its access to global investors.
Hong Kong has emerged as a major hub for this activity because it already has much of the infrastructure required to support tokenised securities. Its established bond market, mature financial technology ecosystem and government-backed digital-asset initiatives have helped create an environment where institutions can test blockchain-based capital-market products.
Digital Bond Market Growth Across Asia and Worldwide
The trend is also part of a broader global expansion. Digital bond issuance reached €4.8 billion globally last year, representing a 48 percent increase from the previous year, according to the Association for Financial Markets in Europe. Asia accounted for 78 percent of total issuance, with Hong Kong playing a significant role in the region’s growth.
Korean financial institutions are also motivated by the potential commercial opportunity. With cryptocurrency and digital-asset markets already attracting significant interest in Korea, financial companies increasingly view tokenisation as a potential new source of revenue. Establishing expertise early could allow Korean firms to influence future market standards and secure positions in the infrastructure supporting digital finance.
However, Korea is working to close the gap. Amendments establishing a legal framework for token securities were passed by the National Assembly on January 15, 2026, and are scheduled to take effect on February 4, 2027.
Analysts expect domestic adoption to develop gradually rather than immediately. Regulatory adjustments, infrastructure investment and the costs associated with transitioning from traditional securities systems could slow the market’s initial expansion.
For now, Hong Kong remains an important testing ground for Korean digital bonds. As Korea prepares its own tokenised-securities framework, the experience gained from these Hong Kong issuances could help Korean banks, companies and regulators understand how blockchain-based capital markets can operate at scale.
