DUBLIN–(BUSINESS WIRE)–the report “South Korea NFT Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on NFT Investments by Key Assets, Currency, Sales Channels – Q2 2022” has been added ResearchAndMarkets.com’s Offering.
The NFT industry in South Korea is expected to grow by 47.3% YoY to reach USD 938.6 million in 2022.
The NFT industry is expected to grow steadily over the forecast period, registering a CAGR of 33.8% during 2022-2028. The NFT use value in the country will increase from USD 938.6 million in 2022 to reach USD 4902.2 million by 2028.
South Korea has long been known as a trendsetter and leader in technological research. This is now being translated into the blockchain space as non-fungible token (NFT) adoption is growing exponentially in South Korea. The country has been ranked among the top 10 nations on the Global Innovation Index by the World Intellectual Property Organization. Large technology companies such as LG and Samsung and gaming giant Krafton drive innovation in the country.
These firms are now entering the growing NFT space by releasing new collectibles to customers. Moreover, these firms are also launching separate divisions of their firms dedicated to developing NFTs. In particular, there are several reasons behind these firms introducing NFTs to retail clients and the general public in South Korea. NFTs have found various use cases that are quickly translating into increasing popularity among South Koreans, from increasing brand awareness to creating better customer engagement.
Among the reasons why the use of NFTs has increased significantly in the last two years in South Korea is that there is no tax on digital assets. The tax on cryptocurrencies has been postponed until 2023, which is expected to be pushed back again by the new president, Yoon Seok-yeol.
Also, while the Financial Services Commission (FSC) is working to implement new rules, none are currently in place for the NFT market. This has kept the market open to innovative marketplaces that may emerge from cryptocurrency exchanges such as Bithumb and Upbit and from gaming giants such as Krafton looking to take advantage of NFTs.
A growing number of South Korean firms developing and issuing NFTs is driving market growth
In South Korea, many firms across various industry verticals develop and issue NFTs. The NFT trend has gained momentum among South Korean companies that use digital assets for various purposes. From using NFTs to increase brand awareness to creating better customer engagement, NFT utilization has grown significantly over the past 12 months.
Zero tax on digital assets has fueled the use of NFTs, thereby fueling market growth in South Korea
Among the other reasons that have fueled the growth of the NFT market in South Korea is that the country does not tax the trading of NFTs and cryptocurrencies. This lack of taxes on digital assets has fueled market growth as more and more people have entered the space to buy and sell NFTs. In South Korea, everyone is getting into the NFT sector, whether their business is crypto-related or not. NFTs have increasingly become a marketing tool for firms looking to appeal to the younger demographic, from mobile operators to manufacturers.
In March 2022, Kia sold 60 NFTs it released within 15 seconds of launch. The NFTs were inspired by the electric car models. Each NFT was priced at 350 Klay, Kakao’s crypto coin. The firm launched the NFTs on Klip Drops, the NFT marketplace operated by GroundX.
Big names are entering the NFT space to stay competitive as traditional marketing agencies face a sharp decline in demand
Innovative and new technologies have a significant impact on businesses across industries. Due to the global pandemic, marketing channels such as social commerce and metaverse have diversified. Consequently, the importance of technology-based content has greatly increased. As a result, big names in the industry are entering the NFT space to remain competitive as traditional marketing agencies face a significant decline in demand.
In March 2022, Cheil Worldwide, a subsidiary of Samsung, announced that the firm was entering the NFT market. The marketing agency will not only create NFTs, but will also create an NFT marketplace, which will allow users to trade digital assets. The firm is expected to collaborate with the entertainment industry and plans to promote intellectual property from K-Drama, performances, music, exhibitions and games as NFTs.
Notably, Samsung has been one of the early adopters of the Web3 craze, which prompted the firm to make several deals and strategic partnerships in 2021. The firm also launched a metaverse, My House, and a virtual store on Decentraland. Samsung also partnered with Theta Network to provide NFTs from Theta Labs to South Korean consumers on Samsung Galaxy S22 and Tablet S8 pre-orders.
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South Korea NFT market size and future growth dynamics by key performance indicators, 2019-2028
South Korea NFT Market Size and Forecast by Key Asset, 2019-2028
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Collectables and art
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Property
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Sport
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Gaming
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Benefit
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Fashion and luxury
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Other
South Korea NFT Market Size and Forecast by Key NFT Collectibles, 2019-2028
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Digital art
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Music and sound clips
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Videos
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Memes and Gifs
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Other
South Korea NFT Market Size and Forecast by Currency, 2019-2028
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Ethereum
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Solana
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Avalanche
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Polygon
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BSC
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Flow
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Wax
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Ronin
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Other
South Korea NFT Market Size and Forecast by Sales Channel, 2019-2028
South Korea user statistics, 2019-2028
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