South Korea is emerging as a powerful force in the global Web3 revolution. A new report titled “Korea Web3 Market Guide,” released by Tiger Research, offers a comprehensive analysis of the country’s booming Web3 ecosystem, highlighting its potential as a key player in the global digital landscape.
The report, created in collaboration with FACTBLOCK, the founder of Korea Blockchain Week (KBW), and co-hosted by Hashed, a leading Asian Web3 venture capital fund, serves as a vital resource for global investors and businesses interested in exploring the Korean Web3 market. It delves deep into the factors driving the country’s prominence in Web3, analyzing its regulatory framework, socio-economic landscape, cultural context, and exploring 18 key components that contribute to the dynamic growth of its Web3 ecosystem.
One of the most prominent factors contributing to South Korea’s Web3 strength is its substantial trading volume. The report reveals that approximately 12.5% of South Korea’s population (6.45 million users) are registered with domestic crypto exchanges, demonstrating the nation’s strong interest in digital assets. Earlier this year, daily cryptocurrency trading volumes even surpassed those of the Korea Composite Stock Price Index (KOSPI), highlighting the country’s enthusiasm for cryptocurrencies.
Another significant factor driving the growth of South Korea’s Web3 market is the expansion of Real-World Assets (RWAs). Due to regulatory uncertainties in the domestic market, Korean participants in the RWA sector are increasingly exploring global opportunities. This trend opens doors for international investors to access Korea’s rich intellectual property and high-quality assets, positioning the Korean RWA market as a promising long-term investment avenue.
South Korea’s vibrant entertainment and gaming industries are also contributing to the country’s Web3 growth. These industries are leveraging Web3 to develop innovative business models, with companies like Modhaus leading the charge. The global popularity of K-pop has fueled Web3 adoption in this sector, and as the fourth-largest gaming market globally, Korea’s gaming industry is a leader in Web3 gaming innovation, outpacing many international competitors.
Adding to the momentum is the active participation of Korean conglomerates in the Web3 market. More than half of the 82 registered large enterprises are actively pursuing Web3 initiatives, driving rapid growth and maturation of the industry through their strategic investments.
The report also highlights South Korea’s robust IT infrastructure and highly skilled workforce as key assets for its Web3 future. The country boasts a high developer-to-population ratio (4%), surpassing Japan (2.63%) and China (0.66%), making it a fertile ground for technological advancement in the Web3 space.
While South Korea has moved from a strict crypto ban to prioritizing investor protection, it continues to uphold rigorous standards compared to global counterparts. The report advises that closely tracking regulatory changes and adopting a long-term strategy will be crucial for successful market entry. This report underscores the importance of South Korea’s Web3 ecosystem and its potential to shape the future of the Web3 market. It offers valuable insights for those looking to capitalize on the country’s rapidly evolving digital landscape. 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.
