South Korea Web3 Market Development Report for Q1 2025

Market Transformation and New Opportunities

In the first quarter of 2025, the South Korean Web3 market will迎来 an important turning point. Once regarded as the "liquidity export" market for global projects, South Korea is transitioning towards a structured self-sustaining industrial ecosystem. This shift is attributed to an improved regulatory environment and deep participation from global projects.

The roadmap released by the Financial Services Commission allows institutional entities to conduct cryptocurrency transactions through corporate accounts, removing a major obstacle for market development. Meanwhile, global projects such as Avalanche, TON, Ripple, and Solana are actively establishing a long-term presence in South Korea, with their activities extending beyond marketing to focus on developer community building and hosting large-scale hackathon events.

Regulatory Progress: Corporate Account Trading Opened

The "Roadmap for Corporate Participation in the Cryptocurrency Market" released by the South Korean Financial Services Commission in February 2025 marks a significant shift in the regulatory environment. The roadmap gradually lifts the corporate cryptocurrency trading restrictions that have been in place for seven years in three phases:

1. Phase One ( Starting Q2 2025 ): Open accounts to law enforcement agencies, non-profit organizations, and exchanges, limited to asset liquidation purposes.
2. Second phase ( Starting from the second half of 2025 ): Allow listed companies and registered investment companies and other professional investors to conduct transactions.
3. Third phase ( medium to long term ): Fully open the market to ordinary enterprises.

This progress lays a legal foundation for South Korean companies to engage in Web3 business, with the potential to enhance market stability by attracting institutional investors and promoting the diversification of financial services such as cryptocurrency funds and custody services.

However, the new policy may also bring some potential risks. Gradual relaxation of regulations may lead to an imbalance between supply and demand, exerting downward pressure on prices. As publicly listed companies and institutional investors enter the market, the government's strength in tax regulation may increase. Furthermore, the conservative risk management tendency of institutional investors may lead to concentrated holdings of Bitcoin, raising concerns about the decline in activity of small market cap tokens.

Global Projects Leading Ecological Development

Following the United States and China, South Korea has become a core strategic market for global Web3 projects. Numerous international teams are actively recruiting Korean talent and establishing substantial cooperation, showcasing a strategic shift from superficial marketing to building a sustainable, builder-led local ecosystem.

Avalanche and the TON Foundation are supporting local teams in Korea to build the ecosystem directly. Avalanche regularly holds demo days to showcase available products and attract users, creating a value loop. The TON Foundation has launched a more systematic "TON Society Korea Builder" program.

The large hackathon event organized by XRPL Korea( Ripple) and Superteam Korea( Solana) has become a key turning point for the Web3 ecosystem in Korea. These events not only reflect the presence of a strong builder ecosystem but also provide a clear market entry path for new projects.

Future Outlook

In the first quarter of 2025, the South Korean Web3 market shows clear signs of transitioning from investment-driven to industry-driven. Regulatory progress lays the foundation for structured market participation, while ongoing ecosystem-building efforts from global projects support the long-term growth positioning of the South Korean market.

The Bank of Korea's digital currency ( CBDC ) "Han River Project" has completed its first retail user real-world transaction, and major commercial banks are beginning to explore the issuance of Korean won stablecoins, all of which are important milestones. In terms of infrastructure, discussions of a "one exchange - multiple banks" system indicate potential structural breakthroughs.

In summary, the Web3 sector in South Korea is evolving towards a sustainable industrial ecosystem. After years of regulatory constraints and structural inefficiencies, South Korea is entering a new phase characterized by policy synergy, institutional participation, and the initial signs of industrial-level growth. In the coming years, South Korea is expected to contribute more substantial innovations on the global Web3 stage.