South Korea NFT Market Intelligence shows that the largest companies in the country are entering the web3 ecosystem
According to the most recent forecast published today, the South Korean non-fungible token (NFT) industry is set to grow by 47.3% annually, reaching $938.6m in 2022, and to grow at a rate of 33.8% during 2022-28.
The NFT spend value is expected to rise to $4,902.2 million by 2028
South Korea’s position as a leader in technological research has translated into the rapid adoption of NFTs in the country.
Recent reports show that large tech companies like LG, Samsung, and Krafton have been leading innovation in the NFT market and introducing them to retail consumers and the general public for various use cases, including promoting brand awareness and enhancing customer interaction by releasing collections appealing to their products.
The tremendous increase in NFT adoption in South Korea over the last two years has also been facilitated by the absence of taxes on digital assets (cryptocurrencies) and rules for the NFT market. This has allowed for the establishment of cutting-edge marketplaces from cryptocurrency exchanges and gaming firms in the country, as well as the creation of their own blockchain (Klaytn), which became the natural go-to platform for Korean users.
The Zero Tax Opportunity
The lack of taxes on the exchange of NFTs and cryptocurrencies is one of the factors boosting the NFT sector in South Korea. As a result, the market has grown as more people purchase and sell NFTs.
NFTs have also grown to be a popular marketing tool for businesses in numerous industries aiming to attract younger consumers. In March 2022, Kia sold 60 NFTs within 15 seconds of their release. Each NFT cost 350 Klay, a cryptocurrency used by Kakao, and was based on types of electric vehicles. On Klip Drops, the NFT marketplace run by GroundX, these NFTs were first introduced.
Sharks are just arriving
Businesses across all industries are being impacted by innovative and emerging technology. The worldwide pandemic has prompted the diversification of marketing avenues, including social commerce and the metaverse, elevating the significance of tech-based content.
As a result of the sharp drop in demand for traditional marketing firms, prominent players across a variety of industries are moving into the NFT arena to stay competitive. Cheil Worldwide, a Samsung affiliate, declared its entry into the NFT industry in March 2022. In addition to minting NFTs, the marketing firm will establish an NTF marketplace where users may exchange digital assets.
Cheil intends to collaborate with the entertainment sector to promote intellectual property for K-Drama, live performances, music, exhibitions, and video games as NFTs. In 2021, Samsung made a number of deals and partnerships, launched My House, a metaverse, and a virtual store on Decentraland, and partnered with Theta Network to give NFTs from Theta Labs to South Korean customers on the pre-orders of Samsung Galaxy S22 and Tablet S8. Samsung was an early adopter of the Web3 craze.
The world is slowly waking up to the web3 revolution, and South Korea is once again set to be a frontrunner in the development of such technology.
