Author: Tiger Research & Korea Blockchain Week (KBW)
Compiled by: TechFlow
Tiger Research today released a special research report on the Korean Web3 market, titled "A Guide to the Korean Web3 Market" (full report here). The report was co-authored by FACTBLOCK, founder of Korea Blockchain Week (KBW), Web3 ecosystem builder, and co-organizer Hashed (Asia's leading Web3 venture capital fund), and aims to provide a guide for international investors and enterprises ahead of the upcoming KBW, which will be held from September 1 to 7, 2024.
The report explores the main drivers of South Korea’s role as a key force in the global development of Web3. It covers the regulatory, socioeconomic and cultural context of the market, as well as the contributions of 18 Web3 ecosystem components to its vibrant development.
Key factors driving the growth of South Korea’s Web3 market include:
Significant trading volume: About one in ten South Koreans (about 6.45 million users, or 12.5% of the total population) are registered on domestic exchanges. This high level of participation shows the country's strong interest in cryptocurrencies. Earlier this year, daily cryptocurrency trading volume even exceeded the KOSPI (Korea Composite Stock Price Index), showing strong enthusiasm for cryptocurrencies.
Expanding Korean IP through RWAs: Amid domestic regulatory uncertainty, Korean RWA market players are gradually expanding globally. This change provides international investors with opportunities to access Korea’s rich IP and high-quality assets. As regulations evolve, Korea’s RWA market presents a good long-term investment outlook.
Entertainment and Games: Web3 provides new business models for entertainment and gaming companies in South Korea. Modhaus is a prime example of Web3 adoption, gaining attention due to the growing global interest in K-pop. Meanwhile, as the fourth largest gaming market in the world, South Korea’s gaming ecosystem is leading in Web3 gaming innovation, surpassing international competitors.
Large enterprises accelerate investment and growth: South Korea's Web3 market is distinguished by the active participation of enterprise groups, with more than half of the 82 registered large enterprises advancing Web3 plans. These investments significantly accelerate the growth and maturity of the industry.
Strong IT infrastructure and skilled workforce: South Korea’s advanced technological capabilities and high-quality talent pool provide a solid foundation for Web3 innovation. The market’s developer-to-population ratio is as high as 4%, surpassing Japan (2.63%) and China (0.66%).
Tiger Research said, “South Korea occupies a very important position in the Web3 industry. The country ranks among the top in the world in terms of cryptocurrency trading volume, and the trading volume of the Korean won is even comparable to that of the US dollar. Although many projects are actively trying to enter the Korean market, Web3 is generally regarded as an industry that requires strict regulation and supervision, which has slowed down its growth to a certain extent.”
Seonik Jeon, CEO of FACTBLOCK, said: “This report provides a comprehensive analysis of the current Korean Web3 and blockchain market and its future potential. Since the establishment of Korea Blockchain Week in 2018, FACTBLOCK has been committed to highlighting the importance of the Korean market and promoting global blockchain cooperation. We hope that this report can serve as a catalyst for the development of a unified Web3 ecosystem.”
The report noted 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 the initial infrastructure stage and is now being creatively applied in multiple fields. Against this backdrop of change, 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 noted that although South Korea has moved away from a complete ban on cryptocurrencies to focus more on investor protection, it still maintains strict standards compared to other countries around the world. Given that Web3 rollout is a prominent topic in the political arena, the report concludes that it will be crucial to keep a close eye on regulatory developments and approach the market with a long-term perspective.
About Korea Blockchain Week
Founded by FACTBLOCK and co-hosted with Hashed, Korea Blockchain Week (KBW) is a global blockchain and Web3 event held annually in Seoul, South Korea since 2018. It brings together the world's top blockchain and Web3 leaders and connects diverse communities.
KBW curates several key 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 the fusion of music, art and culture that makes 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 the world’s most respected businesses and institutions.
