Big Players in South Korean Blockchain Space Drive NFT Growth

The NFT industry in South Korea is predicted to develop gradually throughout the forecast period, with a CAGR of 33.8% between 2022 and 2028. The country’s NFT Spend Value would rise from US$938.6 million in 2022 to US$4902.2 million by 2028.

The impressive growth numbers were shared in ResearchAndMarkets.com’s  latest “South Korea NFT Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on NFT Investments by Key Assets, Currency, Sales Channels – Q2 2022” report.

South Korea has long been regarded as a trend-setter and technology research leader. This is now being transferred into the blockchain sphere as non-fungible token (NFT) use in South Korea rises at an exponential rate. The World Intellectual Property Organization has put the country among the top ten on its Global Innovation Index. Big tech companies like LG and Samsung, as well as gaming behemoth Krafton, are pushing innovation in the nation.

Firms are now entering the burgeoning NFT market by distributing new collectibles to clients. Furthermore, these corporations are establishing specialized sections dedicated to the development of NFTs. Notably, these companies are offering NFTs to retail consumers and the general public in South Korea for a variety of reasons. NFTs have discovered a variety of use cases that have swiftly translated into increased popularity among South Koreans, ranging from enhancing brand recognition to improving consumer engagement.

One of the reasons for the rapid adoption of NFTs in South Korea during the last two years is the absence of a tax on digital assets. The cryptocurrency tax has been delayed until 2023, but it is anticipated to be delayed again by the incoming President-elect, Yoon-Seok-Yeol.

Furthermore, while the Financial Services Commission (FSC) is working on new rules for the NFT market, none are presently in place. This has kept the door open for new marketplaces to develop from cryptocurrency exchanges like Bithumb and Upbit, as well as gaming titans like Krafton aiming to capitalize on NFTs.

South Korean enterprises creating and issuing NFTs spurs market growth

In South Korea, several companies from many industry sectors are creating and issuing NFTs. The NFT movement has gained traction among South Korean businesses that use digital assets for a variety of objectives. NFT usage has increased significantly in the last year, from driving brand awareness to improving consumer interaction.

The elimination of taxes on digital assets

Among the main factors driving the expansion of the NFT sector in South Korea is the absence of taxes on the trading of NFTs and cryptocurrencies. The lack of taxes on digital assets has fueled market expansion as more people enter the market for purchasing and selling NFTs. Everyone in South Korea is going into the NFT market, whether or not their firm is tied to cryptocurrency. From cell carriers to manufacturers, NFTs have rapidly become a marketing tool for companies wanting to appeal to younger populations.

Big industry players competing

As demand for conventional marketing firms falls, big names enter the NFT area to stay competitive.

Innovative and developing technologies are having a substantial influence on organizations in a wide range of industries. Marketing channels like as social commerce and the metaverse have evolved as a result of the worldwide epidemic. As a result, the relevance of technology-based content has skyrocketed. While a result, industry heavyweights are venturing into the NFT field in order to remain competitive as traditional marketing firms see a huge decline in demand.