Original title: How should project founders approach the Korean market?
Original author: Ash
Original translation: Ismay, BlockBeats
Editor's note: The just-concluded KBW conference in South Korea has produced many interesting stories. Zhu Su, co-founder of Three Arrows Capital, once posted on social media that "I heard that the tickets for the blockchain conference Korea Blockchain Week (KBW) are in short supply, which is a bullish signal." Crypto KOL introduced how crypto projects can enter the Korean market from many aspects in this article, which is worth collecting.
The following is the original content:
South Korea's cryptocurrency exchanges handle a staggering $2 billion in trading volume, which provides unique opportunities for projects. This year I had the opportunity to communicate with local stakeholders at the @kbwofficial conference and summarized some key insights to help you develop an entry strategy.
Content Breakdown:
• Overview of the Korean Ecosystem
• Planning a Marketing Campaign
• Understanding Korean Retail Investors
• Others
Save this guide!
Overview of the Korean Ecosystem
This section covers the local ecosystem, including centralized exchanges (CEX), media, research and consulting, investments, projects, and KOLs. According to multiple sources, about 10%-15% of Koreans (6-9 million people) 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.
An interesting fact is that these exchanges are all connected to banks to support the inflow and outflow of funds:
• UpBit is connected to KBank
• BitThumb is connected to Nonghyup Bank
• Coinone is connected to KakaoBank
The Korean Won (KRW) has the largest trading volume on each exchange, so most projects should strive to list their tokens in trading pairs with the Korean Won.
I found the following reasons for the huge volume on local centralized exchanges:
• Local gambling culture* and strong purchasing power of Korean retail investors
• Koreans don’t like self-custody and therefore prefer to trade on centralized exchanges
• Koreans view crypto as a speculative asset class (similar to stocks) that focuses on hype narratives rather than fundamentals (such as association with big brands, like Ondo with Blackrock, Doge with Elon Musk)
*After talking to some people, I would say this is the dark side of Korea, where current economic conditions (soaring real estate market, low wages, weak stock market, and monopolistic economic structure) force people to escape poverty through high-risk gambling in the hope of getting rich overnight.
b) Media
Due to the language barrier, Korean users often rely on local publications for the latest news and updates. In addition to @official_naver’s blog, well-known media platforms include:
@eBlockmedia
@CoinnessGL
@bloomingbit_io
@FACTBLOCK
@tokenpostkr
For non-Korean projects, it can be challenging to work directly with these media companies, which is where the next stakeholder comes in handy.
c) Research & Consulting
Korea has a thriving research and consulting ecosystem, with many companies acting as a bridge between projects and users, as well as acting as an intermediary between international projects and Korean audiences.
Working with a reputable company is essential to developing a successful Korean market entry strategy. I divide these companies into two categories:
i. Consultants
• @Xangle_official
• @DeSpreadTeam
• @0xundefined_
• @INF_CryptoLab
• @Edward__Park
• @EncodingLabs
• @Whitewater_Labs
• @071_labs
ii. Research
• @FourPillarsFP
• @Tiger_Research_
Having clear goals can help founders choose the right company more easily. For example:
• Want to connect with Korean institutions:
@Xangle_official
• Connect with Korean developers and increase research exposure:
@FourPillarsFP
• Targeting Degen or retail users:
@DeSpreadTeam
• Keep up with local regulatory developments:
@Tiger_Research_
d) Investment
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 reasons, market makers cannot open corporate accounts on centralized exchanges in Korea.
e) Projects
• DeFi:
@MitosisOrg, @keplrwallet, @Exponents_Fi
• Ecosystem:
@KaiaChain, @initiaFDN, @StoryProtocol
• Games:
@delabsOfficial, @WemixNetwork, @MaplestoryU
• Validators:
@dsrvlabs, @a41_allforone
*I am sure I missed a lot of projects, please don’t blame me.
f) KOL
• @Edward__Park
• @kimyg002
• @0xProfessorJo
• @delucinator
Marketing Campaign Planning
Many projects are eager to enter the Korean market, attracted by the huge trading volume and strong purchasing power of Korean retail investors.
However, this narrow-minded way of thinking is disrespectful to Korean participants, who are not easily manipulated to provide exit liquidity. Especially after the Terra Luna/Anchor incident, Korean Degen investors are more cautious and knowledgeable.
Koreans place great value on transparent marketing and genuine intentions. Projects with charismatic but humble founders that inspire trust tend to attract a large following in Korean culture, similar to the influence of cults or religions in Korea.
Before entering the Korean market, develop a comprehensive marketing plan that ensures:
• Has clear key performance indicators (KPIs)
• Contains actionable user actions
• Provides a clear roadmap for the future (including pre- and post-TGE plans)
A simple marketing campaign can be planned like this: Define clear marketing goals and set specific actions for users → Work with media agencies and consulting firms for SEO optimization and launch Korean translated research reports → Plan KOL promotion activities to expand influence.
In a saturated market, most traditional marketing strategies are no longer enough to stand out. Korean investors are growing tired of the constant stream of mission campaigns and token/node sales. To stand out, you must be creative and offer real value, such as attractive incentives or financial gain opportunities.
Understanding Korean Retail Investors
Koreans are known to be trendsetters and enthusiasts for the latest hot topics, as evidenced by their active fashion scene, obsession with luxury brands, and devotion to K-Pop. This means projects must constantly update their marketing materials and present innovative and attractive narratives to maintain the interest of retail investors.
Korean users can be divided into the following three categories:
• Airdrop users: need actionable steps
• Opportunistic pickers/traders: follow narratives and hot topics
• Infrastructure users (tech first): very rare, as Koreans trust third-party solutions more
Using a one-size-fits-all approach is doomed to fail, and customized marketing campaigns to the target audience are crucial. Building trust through transparent and open communication, while using Korean, is the key to success in the Korean market.
Others
a) Big consumer apps from Korea
• Naver
• Coupang (e-commerce)
• Kakao (KakaoTalk, Kakao Taxi)
• Samsung Pay (Apple Pay doesn’t work in Korea for obvious reasons)
b) Korean developers are mainly from SKY or KAIST
SKY is an informal abbreviation for three of the most prestigious universities in Korea:
• Seoul National University
• Korea University
• Yonsei University
While KAIST (Korea Advanced Institute of Science and Technology) is a national research university.
c) Other interesting things I learned
• Aptos and Sui are very popular in Korea.
• Many ecosystems have started hiring Korean heads, including Monad, Chromia, etc.
• Didn’t meet anyone from Upbit or BitThumb, listings on these exchanges are very difficult and random.
• There are a lot of e-cigarette shops on the street.
• On your next trip to Korea: use Naver Map and KakaoMap for navigation; Uber and Kakao Taxi for travel; Catch Table for finding restaurants; Coupang Eats for takeout, and Papago for translation.
Okay, enough rambling.
Summary: Map out the local ecosystem and market overview → Work with local consulting firms → Develop localized marketing campaigns → Understand Korean retail investors → Don’t take advantage of Korea just because it has high trading volume.
This article is not written by a Korean. If there are any omissions or errors, please correct them in the comment area!
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