The Korean Blockchain ecosystem got a huge boost from the Korean Blockchain explosion in 2017. Since late 2017, Koreans have been buying cryptocurrencies from around the world. 2018 was particularly interesting as many Koreans bought and sold cryptocurrency because of the exchange price difference. This was called the Kimchi Premium, and even mom and pops that knew nothing about cryptocurrencies started to buy it. While this boom has long passed, South Korea is one of the few countries in Asia that is very open to Blockchain technologies.
Koreans, in particular, are very open to cryptocurrency despite the many risks that come with it. This is because Koreans are open to new and innovative technology. It is estimated that over 15% of citizens in Seoul own cryptocurrency. In addition, due to Korea’s strong gaming culture, they are also early adopters of the metaverse and all things related to digital assets.
Koreans Love Crypto
Over 94% of Koreans over 13 use the social media app KakaoTalk daily. In addition, while Google has gained ground, Naver remains the #1 search engine in South Korea. This shows that Koreans prefer domestic platforms over foreign platforms as they cater to Korean consumers. This is why Zepetto, a blockchain-based game, outperforms the global hit Roblox in Korea. Zepetto has 22 million monthly users, with many earning a living as content creators on the platform.
The generation today all grew up with smartphones. They are considered the mobile generation and familiar with the latest technology and trends. They are eager and passionate about the next big tech trend, so South Korea has so much support for NFTs, GameFi, and Web3.
Korean Startup Ecosystem – Crypto Exchanges
Korea also has two of the biggest cryptocurrency exchanges, Bithumb and Upbit. The Seoul City government has pledged to invest $100 million to build a blockchain complex near Seoul. Over 200 Blockchain startups will be incubated there. The complex will be essential for early-stage Blockchain innovation. The Korean government has also created Korea’s Seoul Innovation Growth Fund for Blockchain and Fintech startups. This fund was created for those having trouble raising Series A funding.
Even though Korean exchanges got hacked like Upbit, Bithumb, cryptocurrency trading continues in South Korea. Many Korean investors exploited bitcoin arbitrage and made quick and easy money. Once the common investor caught on and got in, the price of cryptocurrencies crashed. Many were left with almost nothing. Those who made money are still looking for the next big wave and Blockchain startups that could become the next unicorn. This was how Terra got so big; many of its users were in South Korea. Once Terra LUNA fell, many Koreans lost a lot of money.
The great $60-billion fall of the Terra ecosystem and the fall of Terra’s Korean founder, Do Kwon show how risky investing in cryptocurrency is even today.
Cryptocurrency Regulations in Korea
The Korea Blockchain Enterprise Promotion Association has been tasked to create these regulations, but nothing has come out. Jeju is a potential place for being a special Blockchain region in Korea. Korean Blockchain startups can run their Blockchain services and technologies in Jeju. Cities like Gwangju also want to become the Crypto-valley district. So it seems it is not a matter of if but when it comes to cryptocurrency regulation. Once cryptocurrency regulations are set in Korea, there could be another crypto boom in Korea.
The Korean government banned ICOs in late 2017. However, there was never a ban on cryptocurrency. Data from Korea’s Financial Services Commission (FSC) shows over 6 million active traders in cryptocurrency in South Korea in 2022. This puts South Korea’s digital asset market cap at over $45 billion. This makes South Korea the 6th largest country in the world regarding cryptocurrency ownership.
In 2021 saw new licensing laws that shut down many crypto exchanges in South Korea. Only a few are left, with Upbit and Bithumb being a few of them. However, there is hope that newly elected South Korean President Yoon Suk-yeol will introduce more positive regulations regarding crypto. Yoon Suk-yeol even made an NFT to raise funds for his presidential run.
Corporations embracing Blockchain in Korea
Corporations in Korea have always embraced new technologies. One of these technologies is Blockchain. Kakao, the top mobile platform in Korea, started Ground X, focusing strictly on Blockchain to create a scalable blockchain platform to help with mass adoption. This opened the door for new and innovative blockchain startups to work with Kakao and take advantage of their infrastructure.
Ground X is the creator of Klaytn, an enterprise blockchain platform. Its modular network architecture is designed to enable businesses to easily customize and operate their service-oriented blockchains built atop Klaytn architecture.
There is still pressure from the old generation in South Korea to get stable, secure jobs with big conglomerates like Samsung, LG, and Hyundai. However, like most corporations, they can’t adopt new technologies as quickly as startups. While many Koreans still have a lot of fear about starting their own business, especially a startup. Working with new and trendy technologies like Blockchain could be a gateway for more Korean entrepreneurs to enter the startup scene since Korea is always looking for the next tech wave. Therefore there will always be an opportunity to join or start new and disruptive startups.
The post A Guide to the Korean Blockchain Ecosystem appeared first on Seoulz.