South Korea's Web3 Market: Shifting from Speculative Driven to Industrial Ecosystem

Recent research shows that the South Korean Web3 market is at a critical turning point in the first quarter of 2025. Once regarded as a "liquidity export" market for global projects, the South Korean market is gradually transforming into a structured autonomous industry ecosystem.

Main Development

1. Improved regulatory environment: The Financial Services Commission has issued a roadmap to gradually relax restrictions on companies participating in cryptocurrency trading.

2. Global Project Deep Cultivation: Multiple international Web3 projects are actively carrying out long-term ecological construction in South Korea, including developer community nurturing and large-scale hackathon events.

3. Infrastructure Upgrade: Progress has been made in the pilot programs for central bank digital currencies and the exploration of stablecoins by commercial banks, with ongoing discussions about the "one exchange - multiple banks" model.

Market Transformation Process

From speculation to industry

Despite the high participation of retail investors in South Korea, the infrastructure construction for institutions has lagged behind for a long time. Major obstacles include restrictions on the use of corporate accounts and the high licensing threshold for virtual asset service providers (VASP). These factors have led to the South Korean market being primarily viewed as a customer acquisition channel.

However, the development in the first quarter of 2025 shows that South Korea is transitioning from a speculation-driven market to an industry revitalization-oriented market. Regulatory easing and global project localization efforts are supporting this transformation.

Enterprise participation liberalization

The roadmap released by the Financial Services Commission opens up corporate cryptocurrency trading in three phases:

• Stage One ( Starting from Q2 2025: Accounts will be opened to law enforcement agencies and others, for clearing purposes only.
• Second phase ) in the second half of 202025: Allow listed companies and registered investment companies to trade
• Phase three ( medium to long term ): Fully open to ordinary enterprises

This policy change is expected to lay a legal foundation for enterprises to develop Web3 businesses, enhance market stability, and promote diversification of financial services.

( Global Project Localization

Multiple international Web3 projects are actively establishing long-term ecosystems in South Korea. Projects like Avalanche and TON are nurturing mature developers by directly supporting local teams and hosting regular demo days. Large hackathons organized by Ripple and Solana attract hundreds of participants, showcasing the strong builder ecosystem in South Korea.

These measures not only support the growth of individual projects but also help enhance the overall competitiveness of South Korea's Web3 industry.

Outlook

The South Korean Web3 market is entering a new stage of development. Driven by policy collaboration, institutional participation, and industrial-level growth, South Korea is expected to transform from a mere investment hotspot into a sustainable industrial ecosystem. In the coming years, South Korean projects are expected to contribute more substantial innovations on the global stage.

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