South Korea's Web3 Market Driven by Asset Tokenization, Entertainment: Report

Seoul, South Korea —According to a report released by Tiger Research, Real-world asset tokenization and entertainment are expected to lead South Korea's Web3 market expansion.

The "Korea Web3 Market Guide" highlights key factors positioning the country as a significant player in the global Web3 landscape, including high crypto trading volumes and large enterprise involvement.

Approximately 6.45 million Koreans, or 12.5% of the population, are registered with domestic crypto exchanges. 

Earlier this year, daily crypto trading volume surpassed the Korea Composite Stock Price Index (KOSPI), underscoring the country's intense enthusiasm for crypto assets.

The report said that over half of South Korea's 82 registered large enterprises are pursuing Web3 initiatives, accelerating industry growth and maturation.

Conglomerates such as SK, LG, and Lotte are enhancing the credibility of Web3 technology, contributing to overall market growth.

The country's gaming sector, which is ranked fourth globally, is at the forefront of Web3 gaming innovation. 

South Korea also boasts a high developer-to-population ratio of 4%, surpassing Japan (2.63%) and China (0.66%), indicating a robust foundation for technological advancement in the Web3 space.

"South Korea's position in the Web3 industry is highly significant. The country ranks among the top globally in cryptocurrency trading volume, with the Korean won rivaling the US dollar in trading volume," Tiger Research stated in the report.

While South Korea has moved from an outright crypto ban to focusing on investor protection, it maintains stringent standards compared to global peers. 

The report suggests monitoring regulatory developments for market entry.

South Korean intellectual property expansion through real-world asset tokenization is gaining traction despite domestic regulatory uncertainty. 

This shift provides international investors access to Korea's high-quality assets and presents long-term investment opportunities as regulations evolve.

Companies like Modhaus are gaining attention in the entertainment sector due to growing global interest in K-pop, showcasing new business models enabled by Web3 technologies.

Simon Kim, CEO of Hashed, noted, "The Web3 industry has moved beyond its initial infrastructure phase and is now being creatively applied across various sectors, including finance, gaming, infrastructure, solutions, and entertainment."

The Korea Blockchain Week, scheduled for September 1-7, 2024, aims to showcase these developments and foster global collaboration in the Web3 ecosystem. 

The event, founded by FACTBLOCK and co-hosted by Hashed, has been a gathering ground for top global blockchain and Web3 leaders since 2018.

Seonik Jeon, CEO of FACTBLOCK, expressed hope that the report and the upcoming event will "catalyze advancing the development of a unified Web3 ecosystem."