Tiger Research, a leading research and advisory firm focused on the Asian Web3 market, has unveiled a detailed report on South Korea’s burgeoning Web3 landscape. Titled “Korea Web3 Market Guide,” the report is a collaborative effort with FACTBLOCK, the founder of the Korea Blockchain Week (KBW), and Hashed, Asia’s leading Web3 venture capital fund. Released in anticipation of the upcoming KBW 2024, which will take place from September 1-7 in Seoul, the report serves as an essential guide for international investors and businesses eyeing opportunities in South Korea’s rapidly evolving Web3 sector.
The “Korea Web3 Market Guide” delves into the key factors positioning South Korea as a significant player in the global Web3 arena. It examines the country’s regulatory landscape, socio-economic and cultural context, and the 18 critical components of the Web3 ecosystem that are driving its progress.
Key Drivers of South Korea’s Web3 Growth
One of the standout insights from the report is South Korea’s substantial cryptocurrency trading volume. With approximately 6.45 million users, or 12.5% of the population, registered on domestic exchanges, the country’s engagement with crypto is among the highest in the world. Earlier this year, daily cryptocurrency trading volumes in South Korea even surpassed those of the Korea Composite Stock Price Index (KOSPI), highlighting the nation’s strong enthusiasm for digital assets.
The report also underscores the expansion of Korean intellectual property (IP) through Real World Assets (RWA), particularly in response to domestic regulatory challenges. As Korean RWA market participants increasingly turn to global markets, they are opening new avenues for international investors to tap into Korea’s rich IP and high-quality assets. This shift, coupled with evolving regulations, positions the Korean RWA market as a promising long-term investment opportunity.
South Korea’s entertainment and gaming industries are also highlighted as key sectors benefiting from Web3 technology. With the global popularity of K-pop and the country’s status as the fourth-largest gaming market worldwide, South Korea is at the forefront of Web3 gaming innovation. Companies like Modhaus are leading the way, capitalizing on the growing global interest in Korean pop culture.
Additionally, the report notes the significant involvement of large enterprises in the Web3 space, with over half of Korea’s 82 registered conglomerates pursuing Web3 initiatives. This active participation is accelerating the growth and maturation of the industry.
Strategic Insights and Future Outlook
Tiger Research’s report emphasizes South Korea’s strong foundation for Web3 innovation, supported by its advanced IT infrastructure and highly skilled workforce. With a developer-to-population ratio of 4%, Korea surpasses other major economies such as Japan and China, positioning it as a leader in the Web3 domain.
Despite this progress, the report also highlights the challenges facing the Web3 industry in South Korea, particularly in terms of regulatory oversight. While the country has moved away from an outright ban on cryptocurrencies, it maintains stringent standards focused on investor protection. As Web3 continues to gain prominence in the political arena, the report advises stakeholders to monitor regulatory developments closely and approach the market with a long-term perspective.
Comments from Industry Leaders
Seonik Jeon, CEO of FACTBLOCK, commented on the significance of the report, stating, “Since the inception of the Korean Blockchain Week in 2018, FACTBLOCK has been dedicated to highlighting the importance of the Korean market and fostering global blockchain collaboration. We hope this report will serve as a catalyst for advancing the development of a unified Web3 ecosystem alongside KBW.”
Simon Kim, CEO of Hashed, also emphasized the growing adoption of Web3 technologies across various sectors in South Korea. “The Web3 industry has moved beyond its initial infrastructure phase and is now being creatively applied across various sectors,” Kim noted. “Korea Blockchain Week 2024, set against this backdrop of transformation, will provide a crucial overview of the latest trends and innovations in the global Web3 ecosystem.”
About Korea Blockchain Week
Founded by FACTBLOCK and co-hosted by Hashed, Korea Blockchain Week (KBW) is an annual global blockchain and Web3 festival held in Seoul since 2018. The event attracts top global blockchain and Web3 leaders, offering a platform for exchanging industry insights and experiencing an immersive blend of music, art, and culture.
About Tiger Research
Tiger Research is a research and go-to-market advisory firm focused on the Asian Web3 market. With a mission to empower participants in a borderless digital economy, Tiger Research provides world-class research and advisory services to leading businesses and institutions worldwide.
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