South Korea NFT Market Intelligence Report 2022: Market is Expected to Grow by 47.3% to Reach $938.6 Million in 2022 - Zero Tax on Digital Assets has Propelled the Adoption of NFTs - ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “South Korea NFT Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on NFT Investments by Key Assets, Currency, Sales Channels – Q2 2022” report has been added to ResearchAndMarkets.com’s offering.

NFT industry in South Korea is expected to grow by 47.3% on an annual basis to reach US$938.6 million in 2022.

The NFT industry is expected to grow steadily over the forecast period, recording a CAGR of 33.8% during 2022-2028. The NFT Spend Value in the country will increase from US$938.6 million in 2022 to reach US$4902.2 million by 2028.

South Korea has long been known as a trend-setter and leader in technological research. This is now getting translated into the blockchain realm as the non-fungible token (NFT) adoption grows exponentially in South Korea. The country has been ranked among the top 10 nations on Global Innovation Index by the World Intellectual Property Organization. Big tech firms such as LG and Samsung and gaming giant Krafton are driving innovation in the country.

These firms are now entering the growing NFT space by dropping new collectibles to customers. Moreover, these firms are also launching separate divisions of their firms that are dedicated to developing NFTs. Notably, there are several reasons behind these firms introducing NFTs to retail customers and the general public in South Korea. NFTs have found various use cases that quickly translate into growing popularity among South Koreans, from raising brand awareness to creating better customer engagement.

Among the reasons why the adoption of NFTs has surged significantly over the last two years in South Korea is that there is no tax on digital assets. The tax on cryptocurrencies has been put off until 2023, which is expected to be pushed back again by the new President-elect, Yoon Seok-yeol.

Moreover, while the Financial Services Commission (FSC) is working to implement new rules, none are currently in place for the NFT market. This has kept the market open for innovative marketplaces to emerge from cryptocurrency exchanges like Bithumb and Upbit and from gaming giants like Krafton looking to benefit from NFTs.

An increasing number of South Korean firms developing and issuing NFTs is driving the market growth

In South Korea, many firms across different industry verticals are developing and issuing NFTs. The NFT trend has gained widespread momentum among South Korean companies using digital assets for various purposes. From using NFTs to drive brand awareness to create better customer engagement, NFT utilization has grown substantially over the last 12 months.

Zero tax on digital assets has propelled the adoption of NFTs, thereby driving the market growth in South Korea

Among the other reasons that have driven the growth of the NFT market in South Korea is that the country does not impose taxes on the trading of NFTs and cryptocurrencies. This lack of taxes on digital assets has propelled market growth as more and more people have entered the space of buying and selling NFTs.In South Korea, everyone is getting into the NFT sector, whether their business is crypto-related or not. NFTs have increasingly become a marketing tool for firms looking to appeal to the younger demographics, from mobile carriers to manufacturers.

In March 2022, Kia sold 60 NFTs it issued within 15 seconds of launch. The NFTs were inspired by the electric vehicle models. Each NFT was priced at 350 Klay, Kakao’s crypto coin. The firm launched the NFTs on Klip Drops, the NFT marketplace run by GroundX.

Big names enter the NFT space to remain competitive as traditional marketing agencies face a stiff decrease in demand

Innovative and emerging technologies are having a significant impact on businesses across industries. Because of the global pandemic, marketing channels such as social commerce and metaverse have diversified. Consequently, the importance of tech-based content has greatly increased. As a result, big names in the industry are entering the NFT space to remain competitive as traditional marketing agencies face a significant decrease in demand.

In March 2022, Cheil Worldwide, a subsidiary of Samsung, announced that the firm was entering the NFT market. The marketing agency will not only mint NFTs but will also create an NFT marketplace, allowing users to trade digital assets. The firm is expected to partner with the entertainment industry and has plans to promote intellectual property from K-Drama, performances, music, exhibitions, and games as NFTs.

Notably, Samsung has been one of the early adopters of the Web3 craze, which saw the firm making several deals and strategic partnerships in 2021. The firm also launched a metaverse, My House, and a virtual store on Decentraland. Samsung also partnered with Theta Network to give NFT from Theta Labs to South Korean consumers on the pre-orders of Samsung Galaxy S22 and Tablet S8.

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South Korea NFT Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028

South Korea NFT Market Size and Forecast by Key Assets, 2019-2028