South Korea-based LG Electronics has chosen the enterprise blockchain Hedera (HBAR) to power its non-fungible token (NFT) platform for smart TVs. LG’s newly launched NFT platform, LG Art Lab, allows users to buy, sell and trade NFTs on their LG smart TVs running webOS 5.0 or later. Chris Jo, senior vice president, head of platform […]
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LG, the South Korean electronics giant, is currently developing a cryptocurrency wallet app that will be launched later this year. The wallet, called Wallypto, will be part of a new business phase for the company, which recently abandoned its mobile hardware business and pivoted to software solutions. Wallypto will support only Hedera Hashgraph assets at […]
The far eastern nation may again soon be at the forefront of the blockchain industry as its people are adopting NFT use at a tremendous rate.
South Korea’s reputation as a trend-setter and leader in technological research is quickly spilling into the blockchain realm as nonfungible token (NFT) adoption has skyrocketed in the small East Asian country.
As of 2020, South Korea has been among the top-10 countries in the world in the Global Innovation Index by the World Intellectual Property Organization. That level of innovation is made apparent to global retail consumers by tech giants such as Samsung and LG and to gamers through game maker Krafton.
Those companies, and many like them, are now also delving into the NFT space by dropping new collections to customers and launching divisions of their company dedicated to developing NFTs.
There may be several reasons for the eagerness to expose retail consumers and the general public at large to NFTs that goes beyond just being a thank-you prize for a purchase. This is the idea presented by Strategy Lead at the Korea-based KlayChicken NFT project, Alex Lim. He told Cointelegraph today "NFTs are all the rage but a lot of people don't even know why."
"The NFT hype in South Korea stems from a mixture of sentiments... I believe that in the second half of the year, the time will come when the whole South Korean NFT industry takes a quantum leap."
One reason that may contribute to this quantum leap is the lack of a tax on digital assets in South Korea. The crypto tax has been delayed until 2023, but president-elect Yoon Seok-yeol may push to delay that tax for yet another year to 2024.
Additionally, NFTs are not regulated as stringently as cryptocurrency is now. Although local financial regulators at the Financial Services Commission (FSC) are working to introduce new NFT rules, none yet exist. This has kept the market open to be filled by a litany of new marketplaces at exchanges such as Upbit and Bithumb and from other corporations such as gaming giant Krafton to profit from NFTs.
Co-founder and CEO at Korea-based blockchain ecosystem accelerator DeSpread GM Chung believes practical use-cases for NFTs will become more common in his country. He told Cointelegraph today that “I expect NFTs to expand into a social on-chain profile layer along with transaction history in the future.”
“Previously, the phenomenon of purchasing NFTs for community participation was done, but recently, the expansion of NFT utilities is considered to be a major reason (for its rise in utilization).”
While campaigning, president-elect Yoon issued an NFT collection which followers could mint in order to feel a sense of belonging to his cause.
Going beyond participation is South Korea’s Hoseo University which issued diplomas in NFT form to its 2,830 graduating students on March 18. Local news outlet Money Today reported in February that the university decided to issue NFTs in order to improve accessibility and convenience for students and to prevent the forgery of diplomas.
Chung may even be understating the utility market participants see in NFTs. Last month, the Ministry of ICT, Science and Future Planning pledged to support the growth of a national Metaverse with a $187.7 million dollar grant. Content creators are expected to benefit the most from the new grant.
Content creators appear to be reaping the rewards of increased demand for their services in developing NFT designs for a wide array of companies. A simple search for NFT on the leading job search website JobKorea produces 753 unique positions for content creators and business professionals.
The digital assets those creators make have most commonly been in the form of in-game items or characters, and emojis for text messaging apps. This familiarity with digital assets is why the co-founder of crypto investment firm Stablenode Doo Wan Nam believes Koreans have adopted NFTs so readily. He told Cointelegraph today that "Koreans are more open and understanding when it comes to NFT which is another form of digital asset."
Lim said content creators and businesses are now including NFTs in their business plans because they now see the "potential and utility" of NFTs. He added that building a supportive community to enhance brand power "has always been the inevitable, yet difficult task for any content creator."
"NFTs have opened a new horizon for those who seek to materialize an ideal community where there is commitment, passion, and autonomy."
South Korean tech giant LG Electronics has officially updated its business development goals to include cryptocurrency and blockchain-based software.
South Korean tech giant LG Electronics has officially added blockchain and cryptocurrency as new business areas in its corporate charter.
According to a local South Korean news report, LG added two distinct crypto-related objectives during its annual general meeting on Thursday, March 24. The objectives include “the development and selling of blockchain-based software” and “the sale and brokerage of cryptocurrency,” which led to conjecture whether LG would establish some form of crypto exchange.
When asked about the company’s intention to start its own exchange or platform, an LG spokesperson tempered any speculation, stating, "Nothing has been decided yet. We just mentioned business areas in a broad manner."
Rumors concerning LG creating a crypto-related marketplace emerged earlier this year when Bithumb CEO Heo Baek-young confirmed that the exchange was working with “a large company” to develop an NFT marketplace.
The tech manufacturer has been on a warpath of NFT adoption and integration, announcing earlier this month that it was working with blockchain tech company Kakao’s Ground X to introduce a line of smart TVs that are fully NFT-capable. LG also announced a partnership with Seoul Auction Blue, an online art auctioneer to carry out further projects related to NFT-based artworks.
Related: South Korea’s leading blockchain facing greater competition in NFT market
LG’s announcements come as fellow tech giants and South Korea, more broadly, continue to adopt cryptocurrencies and blockchain-related tech. Earlier this year, fellow South Korean tech giant Samsung, announced that it would be launching an NFT platform for its smart TVs as well as launching its own store in the Decentraland metaverse.
Most notably, the country elected crypto-friendly President Yoon Suk-yeol earlier this month, with Yoon’s election campaign being centered around deregulating South Korea’s crypto industry as well as establishing initiatives to make the country a future home of blockchain technology “unicorns.”
