South Korea Web3 Market Q1 Report 2025: Transitioning from Speculation to Industrial Ecosystem

Market Overview

In the first quarter of 2025, the South Korean Web3 market will reach an important turning point. Once regarded as a "liquidity export" market for global projects, South Korea is gradually transforming into a structured self-sustaining industrial ecosystem. This shift is primarily attributed to two factors: improvements in the regulatory environment and the deepening layout of global projects.

Improvement of Regulatory Environment

The Financial Services Commission ( FSC ) released the "Roadmap for Corporate Participation in the Cryptocurrency Market" in February 2025, which is key to driving change. The roadmap gradually relaxes restrictions on corporate cryptocurrency trading in three phases:

1. Phase One ( Starting from the second quarter of 2025 ): Open accounts for law enforcement agencies, non-profit organizations, and exchanges for asset settlement.
2. The second phase ( Starting from the second half of 2025 ): Allow professional investors such as listed companies and registered investment companies to trade.
3. Third Phase ( Medium to Long Term ): Fully open the market to all enterprises.

This policy change has laid a legal foundation for South Korean companies to engage in Web3 business, and it is expected to enhance market stability by introducing institutional investors with structured risk management. However, a phased relaxation of regulations may also lead to supply and demand imbalances, exerting downward pressure on the prices of certain tokens.

Ecological Construction of Global Projects

Multiple international Web3 projects are actively establishing a long-term foundation in South Korea. Their activities have gone beyond mere marketing and have shifted towards substantial initiatives such as developer community building and hosting hackathons.

Avalanche and the TON Foundation build the ecosystem by directly supporting local teams. Avalanche regularly holds demo days to showcase available products and attract users. The TON Foundation has launched the "TON Society Korea Builder" program to provide systematic support.

The large hackathon event hosted by XRPL Korea( Ripple) and Superteam Korea( Solana) showcased the strong builder ecosystem in Korea. These events not only attracted hundreds of participants but also provided builders with a clear market entry path.

New Trends in Industrial Development

In addition to the layout of Web3 projects, there have also been some important developments in the financial sector in South Korea:

• The Bank of Korea's digital currency ( CBDC ) "Han River Project" has completed its first retail user real-world transaction.
• Major commercial banks have begun exploring the issuance of Korean won stablecoins.
• Discussing the implementation of a "one exchange - multiple banks" system, which is expected to enhance market flexibility.

Outlook

The development in the first quarter of 2025 indicates that the South Korean Web3 market is shifting from a speculation-driven model to one focused on industrial revitalization. With improvements in the regulatory environment, increased institutional participation, and ongoing global project investments, the South Korean Web3 ecosystem is expected to achieve a qualitative leap in the coming years and contribute substantial innovations on the global stage.