Author: Ash
Compiled by: TechFlow
South Korea’s cryptocurrency exchanges process up to $2 billion in trading volume, presenting a unique opportunity for projects.
I had the pleasure of speaking with local stakeholders at this year’s @kbwofficial conference and have come up with some key insights to help you better shape your strategy. These include:
Overview of Korea's Ecosystem
Marketing activity planning
Understanding the Korean general user market
Other considerations
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Overview of the Korean Ecosystem
This section introduces the local ecosystem in South Korea, including centralized exchanges (CEX), media, research and consulting, investment, projects, and key opinion leaders (KOL). According to multiple sources, about 10-15% (about 6-9 million) of Koreans use centralized exchanges for trading.
a) Centralized Exchanges
There are three major centralized exchanges in South Korea: Upbit, BitThumb, and Coinone, with Upbit and BitThumb accounting for 95% of the market share.
Interestingly, these exchanges are all connected to their respective banks to enable fiat deposits and withdrawals:
UpBit connects to KBank
BitThumb connects to Nonghyup Bank
Coinone connects to KakaoBank
Among these centralized exchanges, the Korean Won (KRW) pair has the highest trading volume, so most projects should strive to get their tokens listed as a trading pair.
I noticed that the reason why local centralized exchanges have huge trading volumes is because:
Local gambling culture* and strong purchasing power of Korean consumers
Koreans do not prefer self-custody and therefore prefer to trade on centralized exchanges
Koreans view cryptocurrencies as a speculative asset class (similar to stocks) where hype often takes precedence over fundamentals (e.g., associations with well-known companies or personalities, such as Ondo and Blackrock, Doge and Elon Musk)
Through communicating with some people, I learned that this is a dark side of Korean society, as the current economic conditions (such as the booming real estate market, low wages, weak stock market, and economic monopoly) force people to try to escape poverty through excessive gambling.
b) Media
Due to language barriers, Korean users often rely on local publications to get the latest news and updates. In addition to official_naver's blog, major media platforms include eBlockmedia, CoinnessGL, bloomingbit_io, FACTBLOCK, and tokenpostkr. For non-Korean projects, it may be difficult to communicate directly with these media companies, and the next stakeholder may be able to help.
c) Research and Consulting
South Korea has an active ecosystem of research and consulting firms, many of which act as intermediaries between projects and users, and between international projects and Korean audiences.
To be successful in the Korean market, it is crucial to work with a reputable company. I have divided these companies into two main categories:
i. Consultant
@Xangle_official
@DeSpreadTeam
@0xundefined_
@INF_CryptoLab
@Edward__Park
@EncodingLabs
@Whitewater_Labs
@071_labs
ii. Research
@FourPillarsFP
@Tiger_Research_
Having clear goals can help founders more easily choose the right companies to work with, such as:
Need to establish contact with Korean institutions: @Xangle_official
Want to connect with Korean developers and increase research exposure: @FourPillarsFP
For speculators or ordinary users: @DeSpreadTeam
Follow the latest updates on local regulations: @Tiger_Research_
d) Investment
South Korea’s capital market is small, with only a few major players, which can be divided into two categories:
i. Venture Capital Funds
@hashed_official
@nonceclassic
@LECCAVentures
@blocore_vc
@ROKCapital
@SamsungNext
ii. Market Makers (MMs)
@presto_labs
@alphanonce
@hyperithm
*Please note that due to regulatory restrictions, market makers cannot open corporate accounts on centralized exchanges (CEXes) in South Korea
e) Project
DeFi:
@MitosisOrg
@keplrwallet
@Exponents_Fi
Ecosystem:
@KaiaChain
@initiaFDN
@StoryProtocol
game:
@delabsOfficial
@WemixNetwork
@MaplestoryU
Validator:
@dsrvlabs
@a41_allforone
*I'm sure there are many things I've missed, so please bear with me.
f) KOLs
@Edward__Park
@kimyg002
@0xProfessorJo
@delucinator
Planning marketing activities
Many projects want to enter the Korean market because they are attracted by the high transaction volume and strong purchasing power of ordinary Korean investors.
However, this narrow-minded way of thinking is disrespectful to Korean participants, as they are not a group that can be easily manipulated to provide exit liquidity. Korean speculators are very cautious and have become more rational and mature after the Terra Luna/Anchor incident.
Koreans place great value on transparency and genuine intentions in marketing campaigns.
Founders who are charismatic but humble and can inspire trust, similar to the influence of religions or groups in Korean culture, tend to attract large followings.
Before entering the Korean market, a comprehensive marketing plan should be developed, including:
Clear key performance indicators (KPIs)
Specific action items that users can take
A clear roadmap for the future (covering plans before and after TGE)
A simple marketing campaign can be carried out like this: First, set marketing goals and provide users with clear action guidelines → Work with media companies and consulting firms to conduct SEO optimization and provide research reports translated into Korean → Plan a KOL event to expand influence.
In this competitive market, traditional marketing strategies are no longer enough. Korean investors are fed up with endless Q&A events and token/node sales. To stand out, you need to think creatively and provide real value, such as attractive incentives or financial gain opportunities.
Understanding the Korean general user market
Koreans are known to be trendsetters and are keen on chasing the latest hotness, as can be seen in their active fashion scene, enthusiasm for luxury brands, and relentless pursuit of K-Pop. Therefore, projects must constantly update their marketing materials and provide innovative and engaging storylines to keep the attention of ordinary users.
In South Korea, users can be divided into three categories:
Airdrop enthusiasts: Specific steps are needed
Opportunistic traders: following market narratives and buzz
Technical infrastructure users: This category is relatively small, as Koreans tend to trust third-party solutions more.
A one-size-fits-all approach is doomed to fail, so it is essential to tailor your marketing campaigns to your target audience. Building trust through transparent and open communication, while using the Korean language, is key to success in the Korean market.
Additional Information
a) Major consumer applications in South Korea
Naver
Coupang (e-commerce)
Kakao (including KakaoTalk and Kakao Taxi)
Samsung Pay (Apple Pay doesn’t work in Korea for obvious reasons)
b) Korean developers mainly graduated from SKY or KAIST
SKY is an informal collective name and abbreviation for the three top universities in South Korea:
Seoul National University
Korea University
Yonsei University
And KAIST (Korea Advanced Institute of Science and Technology) is a national research university.
c) Other interesting information I learned
Aptos and Sui are very popular in Korea.
Many ecosystems have already started hiring Korean heads, including companies like Monad and Chromia.
Haven't come across anyone from Upbit or BitThumb, listings on those exchanges are extremely difficult and random.
E-cigarette shops are everywhere.
Next time you travel to South Korea: use Naver Map and KakaoMap for navigation; use Uber and Kakao Taxi for transportation; use Catch Table to find restaurants; use Coupang eats to order takeout; and use Papago to translate.
Summarize
Understand the local ecosystem and market environment → Work with local consulting firms → Develop localized marketing strategies → Understand the general user market in Korea → Don’t capitalize on Korea just because of its high transaction volume.