Government VS Seoul Metropolitan government & Local governments
South Korea is the third-largest country for bitcoin trades coming in behind Japan and the United States. According to the survey results, South Koreans had invested in average $6,000 cryptocurrency and three out of every 10 salaried workers had invested in cryptocurrencies. Considering the population and market size, South Koreans definitely have great interests towards cryptocurrencies and blockchain technology and these facts all point to the dramatic increase in interest in digital currency investment in South Korea in recent years.
With the strong IT infrastructure across the country, South Korea could make deep ties to cryptocurrency, allowing 14-fold increases in the number of cryptocurrency app users in just three months. Considering how closely involved many South Korean investors are in the cryptocurrency space, it’s no surprise that the broader world takes notice when the government threatens drastic measures.
While South Korean government have negative perspectives on cryptocurrencies, City of Seoul, local governments and other big corporations are trying to embrace blockchain technology and cryptocurrency in their systems or services. Thus, it’s important for blockchain companies to get to know about each organization’s stance on the cryptocurrency and blockchain technology before entering into the South Korean market.
Here are different perspectives on crypto and blockchain technology:
1. South Korean Government stance on crypto and blockchain technology
S.Korean government thinks that it’s possible to separate cryptocurrency from blockchain technology. They recently announced to maintain its blanket ban on ICO but they will provide 15 trillion won in the next three years beginning in 2019 to help strengthen the competitiveness of Blockchain, in particular.
2. Seoul Metropolitan government stance
Park Won-soon, the Mayor of South Korean Capital Seoul, has announced intentions to pursue the development of blockchain technology in the city and he often gave keynote speeches at the major blockchain conferences in Korea by supporting blockchain technology.
Also, it will open a Blockchain Support Center in the affluent Mapo district in December. A 2,014 sqm property is being developed, with office space to be provided for tenant blockchain startups. The development is part of a USD 84 million blockchain investment promised by the Seoul government between 2019 and 2022.
3. Local governments stance:
While local governments care the attitudes of the S. Korean government towards cryptocurrency in general, they are trying to embrace blockchain technology in their cities autonomously.
– ‘Busan’: Busan, the 2nd largest of South Korea has been declared a “regulation-free” zone for blockchain development by South Korea’s national government, a move long expected but now formalized as part of a larger liberalization push.
4. Technology Corporations stance:
Every major multi-billiondollar company in South Korea remains actively involved in the cryptocurrency sector. Moreover, major conglomerates in South Korea are active in the cryptocurrency sector because they plan to remain at the forefront of cryptocurrency and blockchain development as a long-term strategy.
Samsung, Kakao and LG are, all three companies have also been active behind the scenes – investing in blockchain firms through their respective venture capital arms.
Most of all, South Korean tech giant Samsung has released Galaxy S10 which added crypto wallet in September and it’s marching ahead in the crypto space.
5. Financial Institutions stance:
- LB Investment (formerly known as LG Venture Investment) has taken part in Series B investment in domestic blockchain firm Blocko.
- Samsung’s investment arm Samsung Next’s portfolio includes blockchain-powered video platform Theta Labs and cryptocurrency wallet ZenGo.
- KB Bank’s KB Investment has invested in cryptocurrency trading platform Heybit and blockchain-based, cloud computing company AI Network.
- KEB Hana’s Hana Ventures has also invested in AI Network, as well as blockchain company Common Computer.
- Shinhan’s Shinhan Investment has put funds into blockchain-powered real estate platform Kasa Korea.
In addition to that, KB Kookmin Bank has recently announced that it will integrate blockchain technology into its internal processes. It stated that blockchain technology could provide a spectrum of benefits to the financial industry, including the issuance of digital tokens, funding, custodial services and trading.
As for foreign blockchain companies, it’s significant to engage with those organizations or government agencies as above to have a solid and reliable reputation in South Korea. Most of all, the holistic approach of the market entry is essential to build a positive awareness considering such a complicated situation.