South Korea Web3 Market Q1 2025 Report: From Speculation to Industry

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, the South Korean market is transitioning to a structured self-sustaining industry ecosystem.

Key Factors in Market Transition

1. Improved regulatory environment: The Financial Services Commission has released a roadmap for corporate participation in the cryptocurrency market, gradually easing trading restrictions on corporate accounts.

2. Global projects are deeply cultivating local markets: Projects like Avalanche, TON, Ripple, and Solana are actively establishing long-term foundations, focusing on developer community building and hosting hackathons.

3. Institutional infrastructure development: With the relaxation of restrictions on corporate accounts, it is expected to bring more institutional participation and diversification of financial services.

The Impact of Opening Corporate Accounts

positive impact

• Establishing a legal foundation for Korean enterprises to conduct Web3 business
• The entry of institutional investors is expected to enhance market stability.
• Promote the diversification of financial services such as cryptocurrency funds and custody.

potential risks

• A phased relaxation of controls may lead to an imbalance between supply and demand, putting downward pressure on prices.
• Government tax regulation may strengthen
• Institutional investors may hold a concentrated amount of Bitcoin, affecting the activity level of the altcoin market.

Localization Strategy for Global Projects

1. Project Support: The Avalanche and TON foundations support local teams in building the ecosystem through direct support.

2. Hackathon: XRPL Korea and Superteam Korea are hosting a large hackathon to nurture local builders.

These measures not only support the growth of individual projects but also enhance the overall competitiveness of the Korean Web3 industry.

Market Outlook

The South Korean Web3 market is transitioning from investment-driven to industry-driven. The pilot of central bank digital currency, commercial banks exploring won stablecoins, and discussions on the "one exchange - multiple banks" system all indicate that a more mature industrial ecosystem is on the horizon.

After years of regulatory constraints and structural inefficiencies, the Web3 sector in South Korea is entering a new phase of policy coordination, institutional participation, and industry-level growth. In the coming years, South Korea is expected to contribute more substantial innovations on the global Web3 stage.