Korea KBW Post-Meeting Guide: How to Enter the Korean Crypto Market?

Original Title: How should project founders approach the Korean market?

Author: Ash

Compiled by: Ismay, BlockBeats

Editor's Note: The recently concluded KBW conference in Korea generated many interesting stories. Zhu Su, co-founder of Three Arrows Capital, stated on social media, "I heard that the tickets for the Korea Blockchain Week (KBW) are in high demand, which is a bullish signal." In this article, a crypto KOL introduces various aspects of how crypto projects can penetrate the Korean market, making it worth saving.

The following is the original content:

Korean cryptocurrency exchanges handled an astonishing $2 billion in trading volume, providing unique opportunities for projects. This year, I had the chance to communicate with local stakeholders at the @kbwofficial conference and summarized some key insights to help you formulate your entry strategy.

Content Breakdown:

• Overview of the Korean ecosystem

• Planning marketing activities

• Understanding Korean retail investors

• Others

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Overview of the Korean Ecosystem

This section covers the local ecosystem, including centralized exchanges (CEX), media, research and consulting, investment, projects, and KOLs. According to various sources, about 10%-15% of Koreans (6-9 million people) use centralized exchanges for trading!

a) Centralized Exchanges

Korea has three major centralized exchanges (Upbit, BitThumb, and Coinone), with Upbit and BitThumb accounting for 95% of the market share.

An interesting fact is that these exchanges are all connected to banks to support the inflow and outflow of funds:

• UpBit connects to KBank

• BitThumb connects to NongHyup Bank

• Coinone connects to KakaoBank

Within each exchange, the trading volume of the Korean Won (KRW) is the largest, so most projects should strive to list their tokens with KRW trading pairs.

I found that the massive trading volume on local centralized exchanges is due to:

• Local gambling culture* and the strong purchasing power of Korean retail investors

• Koreans dislike self-custody and prefer to trade on centralized exchanges

• Koreans view cryptocurrency as a speculative asset class (similar to stocks), focusing on the narrative of hype rather than fundamentals (e.g., associations with major brands like Ondo with Blackrock, Doge with Elon Musk)

*After talking to some people, I would say this is a dark side of Korea; the current economic conditions (soaring real estate market, low wages, weak stock market, and monopolistic economic structure) force people to escape poverty through high-risk gambling, hoping to get rich overnight.

b) Media

Language barriers often lead Korean users to rely on local publications for the latest news and updates. In addition to the @official_naver blog, notable media platforms include:

@eBlockmedia

@CoinnessGL

@bloomingbit_io

@FACTBLOCK

@tokenpostkr

For non-Korean projects, collaborating directly with these media companies may be challenging, which is where the next stakeholder comes into play.

c) Research and Consulting

Korea has a thriving research and consulting ecosystem, with many companies acting as bridges between projects and users, also serving as intermediaries between international projects and Korean audiences.

To formulate a successful market entry strategy in Korea, it is crucial to partner with a reputable company. I categorize these companies into two main types:

i. Consulting Firms

• @Xangle_official
• @DeSpreadTeam
• @0xundefined_
• @INF_CryptoLab
• @Edward__Park
• @EncodingLabs
• @Whitewater_Labs
• @071_labs

ii. Research Firms

• @FourPillarsFP
• @TigerResearch

Clarifying your goals can help founders more easily select the right company. For example:

• Want to connect with Korean institutions:

@Xangle_official

• Connect with Korean developers and increase research exposure:

@FourPillarsFP

• Targeting Degen or retail users:

@DeSpreadTeam

• Keeping up with local regulatory dynamics:

@TigerResearch

d) Investment

Korea's capital market is not large, with only a few major players, which can be divided into two categories:

i. Venture Capital Funds

• @hashed_official

• @nonceclassic

• @LECCAVentures

• @blocore_vc

• @ROKCapital

• @SamsungNext

ii. Market Makers (MMs)

• @presto_labs

• @alphanonce

• @hyperithm

*Please note that due to regulatory reasons, market makers cannot open corporate accounts on centralized exchanges in Korea.

e) Projects

• DeFi:

@MitosisOrg, @keplrwallet, @Exponents_Fi

• Ecosystem:

@KaiaChain, @initiaFDN, @StoryProtocol

• Gaming:

@delabsOfficial, @WemixNetwork, @MaplestoryU

• Validators:

@dsrvlabs, @a41_allforone

*I’m sure I’ve missed many projects, please don’t blame me.

f) KOLs

• @Edward__Park

• @kimyg002

• @0xProfessorJo

• @delucinator

Planning Marketing Activities

Many projects are eager to enter the Korean market, attracted by the huge trading volume and the strong purchasing power of Korean retail investors.

However, this narrow mindset is disrespectful to Korean participants; Koreans are not easily manipulated to provide exit liquidity. Especially after the Terra Luna/Anchor incident, Korean Degen investors are more cautious and knowledgeable.

Koreans place a high value on transparent marketing and genuine intentions. Projects with charismatic yet humble founders that can inspire trust often attract a large following in Korean culture, similar to the influence of cults or religions in Korea.

Before entering the Korean market, it is essential to develop a comprehensive marketing plan that ensures:

• Clear key performance indicators (KPIs)

• Includes actionable user items

• Provides a clear future roadmap (including plans before and after TGE)

A simple marketing campaign can be planned as follows: define clear marketing goals and set specific actions for users → collaborate with media agencies and consulting firms for SEO optimization, and launch research reports translated into Korean → plan KOL promotional activities to expand influence.

In a saturated market, most traditional marketing strategies are no longer sufficient to stand out. Korean investors are increasingly fatigued by the constant emergence of task activities and token/node sales. To stand out, creativity is essential, providing real value, such as attractive incentives or financial gain opportunities.

Understanding Korean Retail Investors

It is well-known that Koreans are trendsetters and enthusiastic followers of the latest fads, as seen in their active fashion circles, obsession with luxury brands, and loyalty to K-Pop. This means that projects must continuously update their marketing materials and present innovative and engaging narratives to maintain the interest of retail investors.

Korean users can be categorized into the following three types:

• Airdrop hunters: need actionable steps

• Opportunistic pickers/traders: follow narratives and trends

• Infrastructure users (tech-first): very rare, as Koreans tend to trust third-party solutions more

A one-size-fits-all approach is destined to fail; customized marketing activities are crucial for the target audience. Building trust through transparent and open communication while using Korean is key to success in the Korean market.

Others

a) Major Consumer Applications in Korea

• Naver

• Coupang (e-commerce)

• Kakao (Kakao Talk, Kakao Taxi)

• Samsung Pay (obvious reasons, Apple Pay is not applicable in Korea)

b) Korean Developers Mainly Come from SKY or KAIST

SKY is an informal acronym for Korea's three most prestigious universities:

• Seoul National University

• Korea University

• Yonsei University

KAIST (Korea Advanced Institute of Science and Technology) is a national research university.

c) Other Interesting Things I Learned

• Aptos and Sui are very popular in Korea.

• Many ecosystems have started recruiting Korean leads, including Monad, Chromia, etc.

• I did not encounter anyone from Upbit or BitThumb; getting listed on these exchanges is very difficult and random.

• There are many vape shops on the streets.

• Next time you travel to Korea: use Naver Map and Kakao Map for navigation; Uber and Kakao Taxi for transportation; Catch Table to find restaurants; Coupang Eats for food delivery, and Papago for translation.

Alright, I've rambled enough.

Summary: Map the local ecosystem and market overview → Collaborate with local consulting firms → Develop localized marketing activities → Understand Korean retail investors → Don’t exploit the Korean market just because of its large trading volume.

This article was written by a non-Korean; if there are any omissions or errors, please feel free to correct them in the comments!