NFT Adoption In South Korea Soars In 2022
The World Intellectual Property Organization listed South Korea as one of the top ten nations in the Global Innovation Index. Tech behemoths like Samsung and LG and gaming developer Krafton showcase that degree of creativity to global retail shoppers.
These businesses and several others are entering the NFT market by introducing fresh collections to clients and establishing departments devoted to NFT development.
The eagerness to introduce NFTs to retail customers and the general public may be motivated by factors other than the desire to give them away as gifts for purchases. Alex Lim suggested the project’s strategy led by Korea’s KlayChicken NFT initiative. “NFTs are huge right now, but many people don’t even understand why,”
“The South Korean NFT hype is a result of a variety of emotions… I think the entire South Korean NFT industry will experience a quantum leap in the second half of the year.
The fact that South Korea has no tax on digital assets may have aided in the rapidity of this significant transformation. The cryptocurrency tax has been postponed until 2023. Yoon Seok-year, the incoming president, might try to push it back to 2024.
NFTs are also less severely regulated than cryptocurrencies at the moment. New NFT regulations are being developed by the Financial Services Commission (FSC), but none have yet been implemented. As a result, numerous new marketplaces have flourished on exchanges like Upbit and Bithumb, as well as from businesses trying to make money off of NFTs, such as gaming giant Krafton.
Also, read – What is Money Laundering and Wash Trading In NFT?
In the future, I anticipate NFTs to develop into a social on-chain profile layer together with transaction history, according to GM Chung, co-founder, and CEO of DeSpread, a blockchain ecosystem accelerator with headquarters in Korea.
President-elect Yoon released an NFT collection during his campaign that followers may mint to feel a sense of loyalty to his cause. In the past, buying NFTs for community participation was a common occurrence. Still, the recent growth of NFT utilities has been cited as a significant factor in the phenomenon’s increase in usage.
In addition to participation, Hoseo University in South Korea awarded NFT degrees to its 2,830 graduates on March 18. According to the local news source Money Today, this policy aims to increase student convenience and accessibility while preventing certificate fabrication.
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Even still, Chung might be underestimating the value NFTs offer market players. A $187.7 million grant was announced last month by the Ministry of ICT, Science, and Future Planning to aid in the creation of a national Metaverse. The recipients of the new grant are anticipated to gain the most.
The increased demand for their assistance in creating NFT designs for various enterprises appears to be helping content creators. On the most well-known job search website, JobKorea, a straightforward search for NFT yields 753 distinct positions for business professionals and content writers.
Digital assets produced by such producers have often taken the shape of emojis for text messaging apps, in-game goods, or characters. Doo Wan Nam, the co-founder of the cryptocurrency investing company Stablenode, argues that Koreans’ experience with digital assets is why they have adopted NFTs so quickly: “Koreans are more open and understanding when it comes to NFT, which is another sort of digital asset.”
Because of NFTs’ “potential and utility,” according to Lim, content producers and companies are already included in their business plans. He continued that developing a welcoming community to strengthen brand power “has always been the unavoidable, yet challenging duty for any content provider.”
For individuals who want to create a community where there is commitment, enthusiasm, and autonomy, NFTs have opened up new possibilities.