Web3 Market Trends in South Korea and the Progress of Blockchain Adoption

Web 3 Trends in South Korea: Insights from Jonathan Kim, Director at SK Telecom

Welcome to NASDAQ trade talks! I’m Jill Malandrino, Global Markets Reporter at NASDAQ, and we’re coming to you live from Barcelona at SmartCon 2023 by Chainlink. Joining me for this segment is Jonathan Kim, Director at SK Telecom, to discuss the web 3 trends in South Korea.

The Unique Web 3 Market Trends in Korea

When it comes to web 3, South Korea has its own unique market trends that differ from the global scene. While startups in Korea have faced challenges in entering the web 3 space due to difficulties in fundraising, large enterprises have been more active. We have seen an increasing number of enterprises utilizing NFTs and tokens to incentivize consumer behavior and enhance customer loyalty. In response to this trend, major mainnets such as Polygon, Avalanche, and Solana have been focusing their partnership efforts on large enterprises. Additionally, large companies are using NFTs as a cultural marketing tool to target the millennial and Gen Z generations, driving business innovation in the country.

SK Telecom’s Interest in Web3 and Preparation

SK Telecom, a leading telecommunications company in South Korea with a market share of over 48%, has recognized the importance of both AI and blockchain in its core telecom services. In December 2017, SKT established a dedicated blockchain division, focusing on the technical aspects and infrastructure. Two years later, SKT launched a mobile credential service based on decentralized identifiers and introduced the Entity Marketplace. SKT’s recent effort includes the T1 Lab crypto wallet, which serves as a digital asset center and gateway. By embracing web 3 technologies, SKT aims to stay at the forefront of innovation in the telecom industry.

Predicting the Turnaround for Web3

There has been a lot of talk about the “crypto winter” and when things will turn around for web 3. While it is difficult to predict the exact timing, certain conditions could trigger a turnaround. Firstly, the end of Fed rate hikes would be beneficial, as digital assets are sensitive to interest rate changes. Secondly, regulatory clarity, including the outcome of major crypto projects’ solutions with the SEC, will have a significant impact on the web 3 market. Approval of the Bitcoin spot ETF by the SEC would also be a positive development. Thirdly, improvements in blockchain network performance and the overall ecosystem vitality will contribute to the revival of web 3. Lastly, advancements in real AI devices, such as the Oculus Quest and Apple’s AR provision, can amplify the adoption of digital assets by revitalizing the user experience.

Blockchain Adoption and Development in the Enterprise and Financial Sector

SKT’s involvement in blockchain adoption and development extends beyond its own initiatives. Last year, SKT signed a partnership agreement with Chainlink, but the implementation of the project was delayed due to financial accounting policy issues related to digital assets. Through this process, SKT realized the importance of establishing financial and accounting guidelines for handling digital assets from a compliance perspective. SKT believes that telecom operators and financial players, as trusted infrastructure providers, can play a crucial role in the market. With their involvement, web 3 has the potential to become mainstream in the near future.

Conclusion

The web 3 market trends in South Korea present a unique landscape, with large enterprises leading the way in adopting blockchain and utilizing NFTs and tokens. SK Telecom, as a major player in the telecom industry, has recognized the importance of web 3 technologies and has been actively preparing for its integration. While the exact timing of the web 3 turnaround is uncertain, certain conditions such as regulatory clarity and improvements in network performance can contribute to its revival. SKT’s involvement in blockchain adoption and development highlights the role of trusted infrastructure providers in shaping the future of web 3.

Frequently Asked Questions

Q: What are the web 3 market trends in South Korea?

A: In South Korea, large enterprises have been more active in adopting web 3 technologies, such as blockchain, NFTs, and tokens. They are utilizing these technologies to incentivize consumer behavior and target the millennial and Gen Z generations. Major mainnets are also focusing on partnerships with large enterprises in the country.

Q: How is SK Telecom preparing for web 3?

A: SK Telecom has established a dedicated blockchain division and has been focusing on the technical aspects and infrastructure of web 3. They have launched services such as a mobile credential service based on decentralized identifiers and a digital asset center and gateway. SKT aims to stay at the forefront of innovation in the telecom industry.

Q: When do you think things will turn around for web 3?

A: The exact timing of the web 3 turnaround is difficult to predict. However, certain conditions such as the end of Fed rate hikes, regulatory clarity, improvements in network performance, and advancements in real AI devices can contribute to its revival.

Q: What role can telecom operators and financial players play in the web 3 market?

A: Telecom operators and financial players, as trusted infrastructure providers, can play an important role in shaping the web 3 market. They can establish financial and accounting guidelines for handling digital assets, ensuring compliance and driving mainstream adoption of web 3 technologies.