South Korea Web3 Market Q1 2025 Report: From Speculation to Industrial Transformation

Turning Point of the South Korean Web3 Market

In the first quarter of 2025, the South Korean Web3 market is experiencing an important turning point. This market, which was once regarded as the "liquidity export" for global projects, is transforming into a structured autonomous industrial ecosystem.

Significant Changes in the Regulatory Environment

The roadmap released by the Financial Services Commission marks significant progress. Institutional entities will gradually be allowed to conduct cryptocurrency transactions through corporate accounts, indicating a gradual easing of regulatory constraints.

Global Projects Support Ecological Construction

Projects like Avalanche, TON, Ripple, and Solana are actively establishing themselves in South Korea. Their activities have gone beyond mere marketing to focus on long-term strategies such as building developer communities and hosting hackathons.

Market Status Analysis

Although retail participation is active and liquidity is abundant, the institutional infrastructure development in the South Korean Web3 market has made limited progress. Regulatory focus has shifted towards investor protection rather than ecological development, which has somewhat delayed broader industry growth.

Main obstacles include:

1. Restrictions on the association between corporate accounts and cryptocurrency exchanges
2. High entry barrier for obtaining a virtual asset service provider license

These institutional constraints, combined with investor activities far exceeding the maturity of the local ecosystem, have led some projects to view South Korea primarily as a customer acquisition channel. However, recent regulatory improvements signify substantial progress in structural reforms.

The Impact of Opening Corporate Accounts

Allowing corporate accounts to engage in cryptocurrency trading will bring the following positive impacts:

• Lay the legal foundation for Korean companies to develop Web3 business.
• Enhancing market stability through participation of institutional investors
• Promote the diversification of financial services, including cryptocurrency funds and custody services.

However, this policy change may also bring some risks:

• Gradual relaxation of regulations may lead to an imbalance in supply and demand, putting downward pressure on prices.
• With the entry of listed companies and institutional investors into the market, tax regulation may strengthen.
• The conservative risk management of institutional investors may lead to concentrated holdings of Bitcoin, affecting the activity level of the altcoin market.

Strategic Layout of Global Projects

Following the US-China relationship, South Korea has become a core strategic market for global Web3 projects. International teams are actively recruiting Korean talent and establishing substantial collaborations, 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 Korea to build the ecosystem. Avalanche regularly hosts demo days, while the TON Foundation has launched the "TON Society Korea Builder" program. These initiatives lay the groundwork for the international expansion of Korean projects.

Hackathon

The large hackathon hosted by XRPL Korea (Ripple) and Superteam Korea (Solana) reflects the strong builder ecosystem in South Korea. These events provide builders with a clear market entry path, bridging the gap between prototype development and actual deployment.

Conclusion

In the first quarter of 2025, the South Korean Web3 market is undergoing a key transformation - shifting from an investment-driven environment to a mature industrial ecosystem. Regulatory progress and ongoing ecological construction efforts from global projects are jointly promoting the South Korean market to achieve a long-term growth positioning.

In addition, the progress of South Korea's central bank digital currency "Han River Project", the exploration of won stablecoin issuance by commercial banks, and the discussions on the "one exchange - multiple banks" system all indicate an evolution towards a sustainable industrial ecosystem in South Korea's Web3 sector. After years of regulatory constraints and structural inefficiencies, South Korea is entering a new stage where policy coordination, institutional participation, and industrial-level growth are beginning to emerge.