South Korea Web3 Market Q1 2025 Report: From Liquidity Export to Industrial Ecosystem

Overview

In the first quarter of 2025, the South Korean Web3 market is迎来了 an important turning point. This market, once regarded as a "Liquidity export" for global projects, is transforming into a structured self-sustaining industrial ecosystem. The Financial Services Commission has relaxed regulations on corporate accounts, allowing institutional entities to gradually conduct cryptocurrency transactions through corporate accounts. At the same time, multiple global projects are actively establishing a long-term presence in South Korea, focusing on developer community building and hosting hackathons.

Analysis of the Current Situation of the Web3 Market in South Korea

Despite active participation from retail investors and ample Liquidity, the institutional infrastructure development in South Korea's Web3 market has made limited progress. Regulatory efforts prioritize investor protection over ecological development, which has delayed broader industry growth.

Main obstacles include:

1. Restrictions on the association of corporate accounts with cryptocurrency exchanges
2. High entry barriers for obtaining a Virtual Asset Service Provider (VASP) license

These institutional constraints, combined with investor activities that far exceed the maturity of the local ecosystem, have led some projects to view South Korea primarily as a customer acquisition channel. However, the market development in the first quarter of 2025 indicates that South Korea has the potential to shift from a speculation-driven market to an industry revitalization-oriented market.

Institutional Progress: Business Account Opening

The Financial Services Commission announced the "Roadmap for Enterprises to Participate in the Cryptocurrency Market" on February 13, 2025, gradually lifting the corporate cryptocurrency trading restrictions that have been in place for seven years:

1. Phase One (starting in Q2 2025): Accounts will be opened to law enforcement agencies, non-profit organizations, and cryptocurrency exchanges, limited to asset liquidation purposes.
2. Phase Two (starting in the second half of 2025): Allow professional investors such as listed companies and registered investment companies to trade.
3. Stage Three (Medium to Long Term): Fully open the market to ordinary enterprises.

This policy change lays a legal foundation for South Korean companies to engage in Web3 businesses, with the potential to enhance market stability through institutional investors and promote diversification of financial services.

Strategic Layout of Global Web3 Projects

Following the US-China relationship, South Korea has become a core strategic market for global Web3 projects. Multiple international teams are actively recruiting Korean talent and establishing substantial collaborations, showcasing a strategic shift from superficial marketing to building a sustainable, builder-led local ecosystem.

Project Support

Avalanche and the TON Foundation are building the ecosystem by directly supporting local teams in Korea. Avalanche holds regular demo days, while the TON Foundation has launched the "TON Society Korea Builder" program to provide a stable growth foundation for local developers.

Hackathon

The large hackathon hosted by XRPL Korea (Ripple) and Superteam Korea (Solana) has become a key turning point for the Web3 ecosystem in South Korea. These events not only showcase a strong builder ecosystem but also provide a clear market entry path for newcomers.

Conclusion

In the first quarter of 2025, the South Korean Web3 market will undergo a key transformation, shifting from an investment-driven environment to a mature industrial ecosystem. Regulatory advancements will lay the foundation for structured market participation, while the ongoing ecological construction efforts of global Web3 projects will assist the South Korean market in achieving a long-term growth positioning.

In addition, the Central Bank Digital Currency (CBDC) "Han River Project" in South Korea has successfully completed its first retail user real-world transaction, and major commercial banks are beginning to explore the issuance of a Korean won stablecoin. In terms of infrastructure, the discussion of a "one exchange - multiple banks" system suggests potential structural breakthroughs.

In summary, the Web3 sector in South Korea is evolving towards a sustainable industrial ecosystem, entering a new stage characterized by policy coordination, institutional participation, and the emergence of industrial-level growth.