South Korea Web3 Market Development Report Q1 2025: The Transformation Path from Speculation to Industrial Ecology

Overview

In the first quarter of 2025, the South Korean Web3 market is approaching a significant turning point. This market, once regarded as a “liquidity export” for global projects, is transforming into a structured autonomous industrial ecosystem. This report delves into the latest development trends in the South Korean Web3 market, focusing on regulatory progress and the strategic positioning of global projects in South Korea.

Key Findings

1. Regulatory environment gradually opens up: The roadmap announced by the Financial Services Commission allows companies to gradually participate in cryptocurrency trading, laying a legal foundation for the industry’s development.

2. Global projects deeply cultivating local ecosystems: Several international Web3 projects are actively establishing a long-term foundation in South Korea, shifting from marketing to building developer communities and hosting substantive events like hackathons.

3. Optimization of industrial structure: With the entry of institutional investors and the improvement of supporting services, the South Korean Web3 market is shifting from a speculation-driven model to an industry-driven model.

Regulatory Update: Opening of Corporate Cryptocurrency Trading Accounts

The Financial Services Commission released the “Roadmap for Corporate Participation in the Cryptocurrency Market” in February 2025, planning to lift restrictions on corporate cryptocurrency trading in three phases:

• Phase One (Starting Q2 2025): Accounts will be opened for law enforcement agencies, non-profit organizations, and exchanges for asset settlement.
• Phase Two (starting in the second half of 2025): Allow listed companies and registered investment companies and other professional investors to trade.
• Phase Three (Medium to Long Term): Fully open the market to ordinary enterprises.

This policy change will provide a legal basis for South Korean companies to engage in Web3 business, while enhancing market stability by introducing institutional investors and promoting the diversification of financial services.

However, a phased relaxation of regulations may lead to an imbalance between supply and demand, creating short-term downward pressure on prices. As institutional investors enter the market, the likelihood of the government strengthening tax management increases. Additionally, the conservative risk management strategies of institutional investors may result in funds concentrating on Bitcoin, affecting the activity level of the altcoin market.

Strategic Layout of Global Projects

Multiple international Web3 projects are actively establishing a long-term development foundation in South Korea, mainly through the following methods:

1. Project support: Organizations like Avalanche and the TON Foundation directly support local teams to build ecosystems, hold regular demo days, and establish systematic support frameworks.

2. Hackathons: Large hackathons hosted by XRPL Korea (Ripple) and Superteam Korea (Solana) cultivate the local developer community and showcase the potential of the Korean market.

These measures not only support the growth of individual projects but also enhance the overall competitiveness of South Korea’s Web3 industry, laying the foundation for local innovative projects to enter the international market.

Market Transformation: From Investment-Driven to Industry-Driven

In the first quarter of 2025, the South Korean Web3 market shows a clear trend of transformation from investment-driven to industry-driven. In addition to regulatory openness and global project layout, the following developments are also worth paying attention to:

• The central bank digital currency (CBDC) “Han River Project” has completed its first retail user real-world transaction.
• Major commercial banks begin to explore the issuance of the Korean won stablecoin.
• The Bank of Korea stated that it will play a more active role in future regulatory legislation.
• Industry discussions are underway to establish a “one exchange - multiple banks” system, which is expected to enhance market flexibility and user access.

These developments collectively promote the sustainable industrial ecosystem evolution in South Korea’s Web3 sector, marking the country’s entry into a new stage characterized by policy synergy, institutional participation, and the initial emergence of industrial-level growth.