The Transformation Path of the South Korean Web3 Market: From Speculation-Driven to Industrial Ecosystem

In the first quarter of 2025, the South Korean Web3 market is迎来 an important turning point. This market, once regarded as a "liquidity export" for global projects, is transitioning towards a structured self-sustaining industrial ecosystem.

Market Status and Barriers

Despite active participation from retail investors and ample liquidity, the institutional infrastructure development in the South Korean Web3 market has progressed slowly. Regulatory efforts prioritize investor protection over ecological development, which has delayed broader industry growth.

Main obstacles include:

1. Restrictions on the association between corporate accounts and cryptocurrency exchanges
2. The high entry barrier for obtaining a license for virtual asset service provider ( VASP ).

These institutional constraints, combined with investor activities that far exceed the local ecological maturity, have led some projects to primarily view South Korea as a customer acquisition channel.

Regulatory Progress: Allowing Corporate Accounts to Engage in Cryptocurrency Trading

The Financial Services Commission ( FSC ) announced the "Roadmap for Enterprises to Participate in the Cryptocurrency Market" on February 13, 2025, gradually lifting the corporate cryptocurrency trading restrictions that have been in place for seven years:

• Phase One ( Starting from the second quarter of 2025 ): Accounts will be opened to law enforcement agencies, non-profit organizations, and exchanges, limited to asset liquidation purposes.
• Phase Two ( Starting from the second half of 2025 ): Allow listed companies and registered investment companies and other professional investors to engage in trading.
• Phase three ( medium and long-term ): Fully open the market to ordinary enterprises

This development lays a legal foundation for Korean companies to engage in Web3 business, which is expected to enhance market stability and promote diversification of financial services.

Strategic Layout of Global Projects

Many international teams are actively recruiting talent from Korea and establishing substantial cooperation, demonstrating a strategic shift from superficial marketing to building a sustainable, builder-led local ecosystem.

project support

Avalanche and the TON Foundation are directly supporting local teams in South Korea to build the ecosystem. Avalanche holds demo days every quarter, and the TON Foundation has launched the "TON Society Korea Builder" program. These ecosystem support strategies have yielded tangible results that go beyond short-term metrics.

Hackathon

The large-scale hackathon organized by XRPL Korea( Ripple) and Superteam Korea( Solana) has become a key turning point for the Web3 ecosystem in Korea, reflecting the presence of a strong builder ecosystem. These events provide builders with clear pathways to market entry, bridging the gap between prototype development and actual deployment.

Future Outlook

In the first quarter of 2025, the South Korean Web3 market will undergo a key transformation - shifting from an investment-driven environment to a mature industrial ecosystem. Regulatory progress lays the foundation for structured market participation, while the ongoing ecological development of global Web3 projects supports the long-term growth positioning of the South Korean market.

Other important developments include:

• The South Korean central bank digital currency ( CBDC ) "Han River Project" has completed its first retail user real-world transaction.
• Major commercial banks explore the issuance of Korean won stablecoins
• Discussion of the "One Exchange - Multiple Banks" system indicates potential structural breakthroughs.

These developments demonstrate the evolution of South Korea's Web3 sector towards a sustainable industrial ecosystem. After years of regulatory constraints and structural inefficiencies, South Korea is entering a new phase characterized by policy collaboration, institutional participation, and the initial emergence of industry-level growth.