The Korean Web3 Market Reaches a Turning Point: From Liquidity Export to Industrial Ecology

In the first quarter of 2025, the South Korean Web3 market is undergoing a significant transformation. This market, once regarded as a "liquidity export" for global projects, is gradually evolving into a structured autonomous industrial ecosystem.

Regulatory Easing Drives Market Transformation

As part of the new policies from the Financial Services Commission, institutional entities are gradually being allowed to conduct cryptocurrency transactions through corporate accounts. This change lays a legal foundation for Korean companies to engage in Web3 business, while also promising to enhance market stability by introducing institutional investors with structured risk management and long-term strategies.

However, this phased relaxation of regulations may also bring some risks. In the short term, there may be an imbalance between supply and demand, which could create downward pressure on the prices of certain crypto assets. As publicly listed companies and institutional investors enter the market, the government's focus on taxation is expected to increase. Furthermore, the conservative risk management strategies of institutional investors may lead to a concentration of funds flowing into Bitcoin, potentially affecting the activity in the altcoin market.

Global Projects Leading Ecological Construction

Multiple internationally renowned Web3 projects are actively establishing a long-term foundation in South Korea. Projects such as Avalanche, TON, Ripple, and Solana have transcended mere marketing efforts, focusing on developer community building and hosting large-scale hackathons.

Avalanche provides a platform for local small and medium-sized projects to showcase and receive feedback by regularly hosting demo days. The TON Foundation, on the other hand, has launched a more systematic "TON Society Korea Builder" program to provide comprehensive support for the local ecosystem.

The large hackathon event organized by XRPL Korea and Superteam Korea attracted hundreds of participants, showcasing the strong builder ecosystem in Korea. These events not only nurture a new generation of local developers but also provide projects with a clear path from prototyping to actual deployment.

Key Indicators of Market Transformation

In addition to regulatory progress and ecosystem development, there are other positive signals emerging in the South Korean Web3 market:

1. The Bank of Korea's central bank digital currency (CBDC) "Han River Project" has completed its first real-world transaction with retail users.
2. Major commercial banks have begun exploring the issuance of Korean won stablecoins.
3. The Bank of Korea has stated that it will play a more active role in future regulatory legislation.
4. Industry discussions on introducing a "one exchange - multiple banks" model are expected to enhance market flexibility and user access.

These developments collectively indicate that the South Korean Web3 sector is transitioning from an investment-driven environment to a mature industrial ecosystem. After years of regulatory constraints and structural inefficiencies, the South Korean Web3 market is entering a new phase characterized by policy synergy, institutional participation, and industrial-level growth.