1. Key factors driving Web3 growth in Korea
2. Role of conglomerates and infrastructure
3. Summary of Tiger Research report

Tiger Research has released its special report on the state of Web3 in South Korea, exploring key factors positioning the country as a significant player in the global Web3 evolution.

Key factors driving Web3 growth in Korea

South Korea stands out on the international Web3 stage due to high cryptocurrency trading volumes. Approximately one in ten Koreans is registered with domestic cryptocurrency exchanges. In 2023, the daily trading volume of cryptocurrencies surpassed that of the Korea Composite Stock Price Index (KOSPI), highlighting the strong interest in crypto. Additionally, despite domestic regulatory uncertainties, Korean participants in the real-world asset (RWA) tokenization market are actively expanding internationally, providing foreign investors access to Korea's rich intellectual capital and high-quality assets. Significant attention is also given to the entertainment and gaming sector. Web3 offers new business models for Korean companies such as Modhaus, gaining popularity amidst growing global interest in K-pop. Korea's gaming industry, ranking 4th globally, also plays a pivotal role in developing Web3 games.

Role of conglomerates and infrastructure

A significant element of the Web3 market's growth in Korea is the active participation of large corporations such as SK, LG, and Lotte. More than half of the 82 registered large enterprises are pursuing Web3 initiatives, significantly accelerating industry growth and development. Korea boasts advanced IT infrastructure and a highly skilled workforce, providing a solid foundation for Web3 innovation. The developer-to-population ratio in the country (4%) exceeds that of Japan (2.63%) and China (0.66%).

Summary of Tiger Research report

According to Tiger Research, South Korea's position in the Web3 industry is highly significant. The country ranks among the top globally in terms of cryptocurrency trading volumes, with the Korean won rivaling the US dollar. However, the perception of Web3 as an industry requiring strict regulation and oversight has somewhat slowed its growth. Seonik Jeon, CEO of FACTBLOCK, noted, "This report provides a comprehensive analysis of the current state of the Korean Web3 and blockchain market and its future potential. We hope this report will serve as a catalyst for advancing a unified Web3 ecosystem alongside KBW." Simon Kim, CEO of Hashed, added, "The report highlights the increasing adoption of Web3 technologies across various sectors in South Korea. Korea Blockchain Week 2024 will provide a critical overview of the latest trends and innovations in the global Web3 ecosystem."

The Tiger Research report underscores South Korea’s pivotal role in the global Web3 ecosystem. Active participation by large corporations, advanced IT infrastructure, and strong interest in cryptocurrencies create favorable conditions for the industry's continued growth and development.