TL;DR
Major global blockchain mainnets are setting up teams and accelerating their GTM strategies for Korea.
The Korean market is attractive because of its 1) abundant liquidity centered on retail investors, 2) diverse and competitive content, and 3) large developer base, which is favorable for talent acquisition.
However, challenges such as cultural differences and regulations remain for global blockchain mainnets eyeing Korea.
Introduction
Leading global blockchain mainnets are showing strong interest in the Korean market. Recognizing the potential of Korea's rich liquidity and diverse content, many are picking up the pace for market penetration. Avalanche, Solana, Chainlink, Immutable, Polygon, Near Protocol, Aptos, Astar Network, and others have demonstrated their commitment to the Korean market by hiring Korean business development representatives, forming partnerships with Korean companies, or making direct investments. In this article, we'll provide insights into which global blockchain mainnets are eyeing the Korean market and what's driving them.
Global blockchains move into the Korean market
Leading global blockchain mainnets are showing strong interest in the Korean market. Recognizing the potential of Korea's rich liquidity and diverse content, many are picking up the pace for market penetration. Avalanche, Solana, Chainlink, Immutable, Polygon, Near Protocol, Aptos, Astar Network, and others have demonstrated their commitment to the Korean market by hiring Korean business development representatives, forming partnerships with Korean companies, or making direct investments. In this article, we'll provide insights into which global blockchain mainnets are eyeing the Korean market and what's driving them.
These mainnet projects have taken note of the high adoption rate of blockchain technology among Korean companies. In fact, large Korean companies are actively exploring blockchain technology regardless of industry sector. This is especially true in the gaming industry. All of the top 10 Korean game companies by market capitalization are open to investing in blockchain technology or participating in blockchain-based game development. As a result, many blockchain projects are especially keen on the Korean gaming market. In fact, most of the projects that have entered the country have formed partnerships or technological cooperation agreements. The explosive potential in the entertainment sector is also being recognized. One instance is Avalanche is promoting a blockchain-based concert ticket business with Korean tech company SK Planet.
Three reasons why the Korean market is so attractive
The South Korean market is attracting a lot of interest from projects due to its high technology acceptance and robust infrastructure. There are many other reasons why South Korea is an attractive market:
South Korea is a highly liquid market with a high level of interest and investment in crypto.
South Korea is a cultural content powerhouse,
It has a robust developer training environment, which makes talent acquisition easier.
1. Abundant liquidity in the Korean crypto market
According to a recent announcement by crypto data analytics firm CCData, the South Korean won (KRW) has overtaken the US dollar (USD) as the fiat currency with the highest Bitcoin trading volume. This highlights the enthusiasm for crypto among South Koreans. This is especially significant as South Korea only allows trading on a limited number of exchanges based on real-name accounts. In addition, investment in altcoins is also strong, with altcoins accounting for 85% of total crypto trading volume in South Korea. In fact, the Korea accounts for a significant share of the daily trading volume of mainnet projects that have entered the Korean market. As a result, many projects are looking to enter South Korea and in hopes that the liquidity will be able to revitalize their ecosystems.
2. Diverse and competitive content
South Korea is a diverse and globally competitive content-rich market. The Korean content industry is expected to generate approximately 146 trillion KRW (approximately 110.6 billion USD) in revenue in 2022, ranking among the top seven countries globally. In addition, the entertainment sector has recorded significant surpluses and growth rates.
In addition, both Korean game and entertainment companies are active in blockchain technology, making it easier to secure content IP. For example, Nexon, a game company, is developing a blockchain game using MapleStory, which is a major IP. Hive, an entertainment company, is also actively investing in blockchain companies and expanding its blockchain business by establishing subsidiaries, “Levvels” and “Binary Korea”. As a result, global blockchain mainnets have a strong intent to revitalize their blockchain ecosystems by leveraging the rich content resources in Korea.
3. Favorable environment for developer talent acquisition
South Korea has a well-established developer training environment, making it a favorable country for talent acquisition. In particular, South Korea has a large number of game developers, making it an important player in the blockchain gaming market. According to Game7's "2023 State of Web3 Gaming" data, South Korea ranks second after the United States in terms of game developers by country. Beyond gaming, Korea's strong developer base is expected to contribute significantly to the development of the entire blockchain ecosystem. In response, a number of global blockchains have translated their development documentation, held hackathons, and provided support to foster talent in the country. In fact, Near Protocol has signed partnerships with 12 blockchain societies in Korea to foster talent.
Still, the Korean market is a tough nut to crack
The South Korean market is clearly an attractive market for blockchain mainnets. However, entering the Korean market will be challenging, as large Korean companies and institutions tend to favor Korean-based projects that are familiar with the local language and business culture. Therefore, market penetration is expected to be difficult.
Second, there are regulatory challenges. Korea has a high number of regulatory hurdles related to virtual assets, and game-related laws are unfavorable for blockchain games. In fact, the Game Rating Board refuses to rate blockchain-related games, making their future release unclear. Therefore, Korean game companies such as Nexon and WeMade are targeting global markets instead.
Despite these challenges, the long-term potential of the Korean market is clear, and many blockchain mainnets are accelerating their entry. Not every blockchain project will find Korea to be a great fit. Success will depend on how each project navigates the unique regulatory and environmental challenges of the country. It will be worthwhile to keep track of who comes out on top.
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