RWA tokenization and the entertainment industry will be the main driving force for the expansion of Web3 in South Korea. Large corporate groups such as SK, LG, and Lotte are enhancing the credibility of Web3 technology, driving overall market growth.
Author: Tiger Research & Korea Blockchain Week (KBW)
Translation: Deep Tide TechFlow
Tiger Research today released a special research report on the South Korean Web3 market, titled "South Korean Web3 Market Guide" (see the full report here). The report was co-authored by FACTBLOCK, founder of Korea Blockchain Week (KBW), a builder of the Web3 ecosystem, and co-host Hashed (a leading Web3 venture capital fund in Asia), aiming to provide guidance for international investors and businesses ahead of the KBW scheduled for September 1-7, 2024.
The report explores the key driving factors of South Korea as a crucial force in global Web3 development. It covers regulation of the market, socio-economic and cultural background, and the contributions of 18 components of the Web3 ecosystem to its active development.
Key factors driving the growth of the South Korean Web3 market include:
Significant trading volume: Approximately one-tenth of South Koreans (about 6.45 million users, accounting for 12.5% of the total population) are registered on domestic exchanges. This high level of participation demonstrates the country's strong interest in cryptocurrencies. Earlier this year, the daily cryptocurrency trading volume even exceeded that of the KOSPI (Korea Composite Stock Price Index), indicating a strong enthusiasm for cryptocurrencies.
Expanding South Korean IP through RWA: In the face of domestic regulatory uncertainty, participants in South Korea's RWA market are gradually expanding globally. This change provides international investors with opportunities to access South Korea's rich intellectual property and high-quality assets. With the evolution of regulations, South Korea's RWA market demonstrates promising long-term investment prospects.
Entertainment and gaming: Web3 provides new business models for South Korean entertainment and gaming companies. Modhaus is a typical example of the popularization of Web3, gaining attention due to the increasing global interest in K-pop. At the same time, as the world's fourth-largest gaming market, South Korea's gaming ecosystem is leading in Web3 game innovation, surpassing international competitors.
Accelerated investment and growth by large enterprises: The South Korean Web3 market stands out due to the active participation of corporate groups, with over half of the 82 registered large enterprises advancing Web3 initiatives. These investments significantly accelerate industry growth and maturity.
Strong IT infrastructure and skilled labor force: South Korea's advanced technological capabilities and high-quality talent pool provide a solid foundation for Web3 innovation. The ratio of developers to the population in the market is as high as 4%, surpassing that of Japan (2.63%) and China (0.66%).
Tiger Research stated, "South Korea holds a very important position in the Web3 industry. The country ranks among the top globally in cryptocurrency trading volume, and the volume of the Korean won can even rival the US dollar. While many projects are actively trying to enter the Korean market, the growth rate has been somewhat slowed down to some extent due to the widespread perception that Web3 is an industry that requires strict regulation and supervision."
Seonik Jeon, CEO of FACTBLOCK, stated, "This report provides a comprehensive analysis of the current South Korean Web3 and blockchain market and its future potential. Since the establishment of Korea Blockchain Week in 2018, FACTBLOCK has been committed to emphasizing the importance of the Korean market and promoting global blockchain cooperation. We hope this report will serve as a catalyst to drive the unified development of the Web3 ecosystem."
The report points out that Web3 technology is becoming increasingly popular in various fields in South Korea, including finance, gaming, infrastructure, solutions, and the entertainment industry. Simon Kim, CEO of Hashed, said, "The Web3 industry has surpassed its initial infrastructure stage and is now being creatively applied in multiple fields. Against this backdrop of transformation, Korea Blockchain Week 2024 will provide an important overview of the latest trends and innovations in the global Web3 ecosystem."
Regarding market entry, the report notes that while South Korea has shifted from a comprehensive ban on cryptocurrencies to a greater focus on investor protection, it still maintains strict standards compared to other countries globally. Given that Web3 promotion is a significant topic in the political arena, the report concludes that closely monitoring regulatory dynamics and entering the market from a long-term perspective will be crucial.
About Korea Blockchain Week
Korea Blockchain Week (KBW) was founded by FACTBLOCK and co-hosted with Hashed. Since 2018, it has been held annually in Seoul, South Korea, and is a global event for blockchain and Web3. It brings together top global leaders in blockchain and Web3, connecting diverse communities.
KBW carefully plans multiple important events, including its flagship conference "IMPACT." This provides participants and attendees with a unique opportunity to not only exchange industry insights but also immerse themselves in a fusion of music, art, and culture, making KBW a unique and enriching event.
About Tiger Research
Tiger Research is a research and go-to-market (GTM) consulting firm focused on the Asian Web3 market. Tiger Research's mission is to empower everyone in the borderless digital economy, providing world-class research and business consulting services to empower the most respected global enterprises and institutions.
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