From Investment-Driven to Mature Ecosystem
This report examines South Korea’s Web3 market in Q1 2025, analyzing its evolution from a liquidity exit to a structured industrial ecosystem, with a focus on regulatory progress and global project initiatives.

1. Liquidity Exit to Industrial Ecosystem: South Korea’s Web3 market reached an inflection point, transitioning from a speculative "liquidity exit" to a self-sustaining ecosystem.

2. Corporate Account Deregulation: Institutional entities are gradually permitted to trade crypto via corporate accounts under the FSC’s roadmap.

3. Global Project-Led Development: Avalanche, TON, Ripple, and Solana are building long-term foundations through developer communities and hackathons.

Despite retail participation and liquidity, institutional infrastructure remains underdeveloped. Regulatory focus on investor protection over ecosystem growth has slowed broader industry expansion.

Key Barriers:

• Restrictions linking corporate accounts to crypto exchanges.

• High barriers to VASP licensing, creating legal uncertainties for large projects.

These constraints reinforce Korea’s perception as a "liquidity exit." However, recent regulatory improvements (e.g., corporate crypto trading) signal structural progress. Global projects are fostering local ecosystems, suggesting Korea is at a pivotal transition toward long-term value creation.

Background: Since the 2017 "Park Sang-ki ban," corporate crypto trading was restricted, creating a dual system where individuals could trade but businesses could not.

FSC’s 2025 Roadmap:

• Phase 1 (Q2 2025): Allows asset liquidation for law enforcement, nonprofits, and exchanges.

• Phase 2 (H2 2025): Permits trading by listed companies and professional investors.

• Phase 3 (Long-term): Opens market access to all enterprises.

Most Web3 projects fall under Phase 3 and face high entry thresholds (e.g., ₩10B financial product holdings). While immediate benefits are limited, the roadmap indicates gradual deregulation.

• Establishes legal foundations for Web3 businesses.

• Enhances market stability via institutional investors.

• Diversifies financial services (e.g., crypto funds, custody).

Corporate participation could reduce volatility, mitigate the "Kimchi Premium," and expand crypto-linked financial products.

• Phased deregulation may create sell-side pressure.

• Tighter tax enforcement as institutions enter.

• Bitcoin dominance may drain altcoin liquidity, impacting retail-heavy markets.

Korea has become a strategic market for global Web3 players, with projects shifting from marketing to ecosystem building.

• Avalanche: Collaborates with local teams (e.g., MapleStory developers) and hosts demo days.

• TON Foundation: Launched "TON Society Korea Builder" with structured support for local projects.

These initiatives provide tangible growth pathways for Korean developers.

• Ripple’s DE-BUTHON 2025: 24 teams, 203 participants.

• Solana’s SEOULANA HACKATHON: 300+ attendees.

Such events validate Korea’s builder ecosystem and bridge prototyping to deployment.

Q1 2025 marked Korea’s transition toward a mature Web3 ecosystem, driven by:

• Regulatory advances: Corporate accounts, potential "one exchange-multi bank" system.

• CBDC progress: "Han River Project" completed its first retail trial; banks exploring KRW stablecoins.

After years of constraints, Korea is entering a phase of policy alignment, institutional participation, and industrial-scale growth.

Conclusion: While challenges persist, Korea’s Web3 market is evolving beyond speculation. With sustained global collaboration and regulatory clarity, it could emerge as a hub for substantive innovation.

Source: Tiger Research, Avalanche Korea, FSC

From Investment-Driven to Mature Ecosystem
This report examines South Korea’s Web3 market in Q1 2025, analyzing its evolution from a liquidity exit to a structured industrial ecosystem, with a focus on regulatory progress and global project initiatives.

1. Liquidity Exit to Industrial Ecosystem: South Korea’s Web3 market reached an inflection point, transitioning from a speculative "liquidity exit" to a self-sustaining ecosystem.

2. Corporate Account Deregulation: Institutional entities are gradually permitted to trade crypto via corporate accounts under the FSC’s roadmap.

3. Global Project-Led Development: Avalanche, TON, Ripple, and Solana are building long-term foundations through developer communities and hackathons.

Despite retail participation and liquidity, institutional infrastructure remains underdeveloped. Regulatory focus on investor protection over ecosystem growth has slowed broader industry expansion.

Key Barriers:

• Restrictions linking corporate accounts to crypto exchanges.

• High barriers to VASP licensing, creating legal uncertainties for large projects.

These constraints reinforce Korea’s perception as a "liquidity exit." However, recent regulatory improvements (e.g., corporate crypto trading) signal structural progress. Global projects are fostering local ecosystems, suggesting Korea is at a pivotal transition toward long-term value creation.

Background: Since the 2017 "Park Sang-ki ban," corporate crypto trading was restricted, creating a dual system where individuals could trade but businesses could not.

FSC’s 2025 Roadmap:

• Phase 1 (Q2 2025): Allows asset liquidation for law enforcement, nonprofits, and exchanges.

• Phase 2 (H2 2025): Permits trading by listed companies and professional investors.

• Phase 3 (Long-term): Opens market access to all enterprises.

Most Web3 projects fall under Phase 3 and face high entry thresholds (e.g., ₩10B financial product holdings). While immediate benefits are limited, the roadmap indicates gradual deregulation.

• Establishes legal foundations for Web3 businesses.

• Enhances market stability via institutional investors.

• Diversifies financial services (e.g., crypto funds, custody).

Corporate participation could reduce volatility, mitigate the "Kimchi Premium," and expand crypto-linked financial products.

• Phased deregulation may create sell-side pressure.

• Tighter tax enforcement as institutions enter.

• Bitcoin dominance may drain altcoin liquidity, impacting retail-heavy markets.

Korea has become a strategic market for global Web3 players, with projects shifting from marketing to ecosystem building.

• Avalanche: Collaborates with local teams (e.g., MapleStory developers) and hosts demo days.

• TON Foundation: Launched "TON Society Korea Builder" with structured support for local projects.

These initiatives provide tangible growth pathways for Korean developers.

• Ripple’s DE-BUTHON 2025: 24 teams, 203 participants.

• Solana’s SEOULANA HACKATHON: 300+ attendees.

Such events validate Korea’s builder ecosystem and bridge prototyping to deployment.

Q1 2025 marked Korea’s transition toward a mature Web3 ecosystem, driven by:

• Regulatory advances: Corporate accounts, potential "one exchange-multi bank" system.

• CBDC progress: "Han River Project" completed its first retail trial; banks exploring KRW stablecoins.

After years of constraints, Korea is entering a phase of policy alignment, institutional participation, and industrial-scale growth.

Conclusion: While challenges persist, Korea’s Web3 market is evolving beyond speculation. With sustained global collaboration and regulatory clarity, it could emerge as a hub for substantive innovation.

Source: Tiger Research, Avalanche Korea, FSC