Why NFT adoption is so high in South Korea

South Korea’s reputation as a trendsetter and leader in technological research is quickly spilling over into the blockchain space as non-fungible token (NFT) acceptance has skyrocketed in the small East Asian country.

As of 2020 was South Korea under the top 10 countries in the world in the World Intellectual Property Organization’s Global Innovation Index. This level of innovation is being demonstrated to global retail customers by tech giants like Samsung and LG, and to gamers by games maker Krafton.

These companies, and many like them, are now diving into the NFT space as well Launching new collections to customers and set up departments in your company dedicated to further development NFTs.

There can be several reasons for the eagerness to engage retail consumers and the general public with NFTs that go beyond a mere thank you price for a purchase. This is the idea put forward by the strategy lead of Korea-based NFT project KlayChicken, Alex Lim. He told Cointelegraph today, “NFTs are all the rage, but a lot of people don’t even know why.”

“The NFT hype in South Korea comes from a mixture of feelings… I believe that the second half of the year will be the time when the entire South Korean NFT industry will make a quantum leap.”

One reason that could contribute to this quantum leap is the lack of a tax on digital assets in South Korea. The crypto The tax has been postponed to 2023but President-elect Yoon Seok-yeol may be pushing for it delay this tax for another year until 2024.

Additionally, NFTs are not considered regulated strict as cryptocurrency is now. Although local financial regulators are at the Financial Services Commission (FSC). are working on introducing new NFT rules, there are none yet. This has kept the market open to be filled with a litany of new marketplaces on stock exchanges like Upbit and Bithumb and from other companies like e.g Gaming giant Krafton to benefit from NFTs.

Co-founder and CEO of Korea-based blockchain ecosystem accelerator DeSpread GM Chung believes practical use cases for NFTs are becoming more common in his country. He told Cointelegraph today that “I expect NFTs to expand to an on-chain social profile layer along with transaction history in the future.”

“Previously there was the phenomenon of buying NFTs for community participation, but recently the expansion of NFT utilities is considered to be the main reason (for the increase in usage).”

During the election campaign, the President-elect Yoon published an NFT collection the followers could shape in order to feel a part of his cause.

Yoon Seok-yeol’s NFT collection on the Aergo blockchain. Source: CCCV

Beyond participation is South Korea’s Hoseo University, which exhibited diplomas in NFT form to its 2,830 graduates on March 18th. Local news outlet Money Today reported in February that the university decided to issue NFTs to improve accessibility and convenience for students and prevent diploma forgery.

Chung may even be underestimating the utility market participants who see NFTs. Last month, the Department of ICT, Science and Future Planning pledged that Growth of a national metaverse with a grant of $187.7 million. Content creators are expected to benefit most from the new promotion.

Content creators appear to be reaping the rewards of increased demand for their services in developing NFT designs for a variety of companies. A simple search for NFT on the leading job search website JobKorea produces 753 unique positions for content creators and business professionals.

The digital assets these developers created most commonly took the form of in-game items or characters and emojis for text messaging apps. This familiarity with digital assets is why crypto investment firm Stablenode co-founder Doo Wan Nam believes Koreans have embraced NFTs so readily. He told Cointelegraph today that “Koreans are more open and understanding when it comes to NFT, which is another form of digital assets.”

Lim said content creators and companies are now incorporating NFTs into their business plans because they now see the “potential and utility” of NFTs. He added that building a supportive community to strengthen brand power “has always been the inevitable but difficult task for any content creator.”

“NFTs have opened a new horizon for those who strive to realize an ideal community where commitment, passion and autonomy exist.”