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

In the first quarter of 2025, the South Korean Web3 market will迎来 important turning point. This market, once seen as a global project "liquidity export", is transitioning to a structured autonomous industrial ecosystem.

Main Observations

1. Improved regulatory environment: The Financial Services Commission has released a roadmap to gradually allow institutional entities to conduct cryptocurrency trading through corporate accounts.

2. Global project ecological construction: Projects such as Avalanche, TON, Ripple, and Solana are actively establishing long-term foundations in South Korea, focusing on cultivating developer communities and hackathon activities.

3. From speculation to industry: The market is shifting from an investment-driven model to one focused on industrial revitalization, with institutions ready and sustained investment interest working in tandem.

System Progress: Corporate Accounts Open for Cryptocurrency Trading

On February 13, 2025, the Financial Services Commission announced the "Roadmap for Enterprises to Participate in the Cryptocurrency Market," which lifts the seven-year restrictions on corporate cryptocurrency trading in three phases:

• Phase 1 (starting Q2 2025): Open accounts to law enforcement agencies, non-profit organizations, and exchanges, limited to asset settlement purposes.
• Second phase (starting in the second half of 2025): Allow professional investors such as listed companies and registered investment firms to trade.
• Stage Three (Medium to Long Term): Fully open the market to ordinary enterprises.

This progress lays a legal foundation for enterprises to develop Web3 businesses, with the potential to enhance market stability through participation from institutional investors and promote the diversification of financial services.

However, a phased relaxation of regulations may lead to an imbalance between supply and demand, putting downward pressure on prices. With publicly listed companies and institutional investors entering the market, the likelihood of increased government tax regulation rises. The conservative risk management of institutional investors may also lead to a concentration of Bitcoin holdings, raising concerns about a decline in the activity of the altcoin market.

Strategic Layout of Global Web3 Projects

Following the US-China relations, South Korea has become a core strategic market for global Web3 projects. International teams are actively recruiting Korean talent and establishing substantial collaborations, demonstrating a strategic shift from superficial marketing to building a sustainable, builder-led local ecosystem.

Project Support

Avalanche and the TON Foundation support local teams in building the ecosystem directly. Avalanche regularly holds demo days, and the TON Foundation has launched the "TON Society Korea Builder" program to provide a stable growth foundation for local developers.

Hackathon

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

From Investment-Driven to Industry-Driven

In the first quarter of 2025, the South Korean Web3 market began to shift from an investment-driven environment to a mature industrial ecosystem. Regulatory advancements laid the foundation for structured market participation, while global projects' ecosystem-building efforts support long-term growth.

It is noteworthy that the South Korean central bank's digital currency "Han River Project" has completed its first retail user real-world transaction, and major commercial banks are beginning to explore the issuance of a South Korean won stablecoin. The discussion of a "one exchange - multiple banks" system suggests a potential structural breakthrough.

In summary, the South Korean Web3 sector is evolving towards a sustainable industrial ecosystem. After years of regulatory constraints and structural inefficiencies, South Korea is entering a new stage characterized by policy synergy, institutional participation, and the initial signs of industrial-level growth.