Conglomerates' Deep Pockets Continue Blockchain Growth in South Korea Despite Crypto Ban

Unlike in other countries, where startups are at the heart of blockchain development, the South Korean blockchain landscape has "Chaebols," large, family-owned business conglomerates in Korea, at its heart.

Still, South Korea is one of the most advanced markets in the blockchain and cryptocurrency industry.

Since ICOs have been fundamental to the proliferation of blockchain startups around the world, the stiff regulatory stance against them in Korea could have tipped the scale in favor of chaebols and conglomerates, all of whom have deep pockets to invest on research and development.

The involvement of the Korean conglomerates in blockchain is an extension of how modern South Korea encourages starting early.

Kakao became more directly involved in blockchain business through its Tokyo-based blockchain subsidiary, GroundX. GroundX has developed a blockchain platform of its own dubbed Klaytn.

There are not many public reports on NHN's involvement in blockchain beyond reports of its investment in OKCoin in 2018 and now working with Korea Post to build a blockchain payment system.

While South Korea's financial regulators have a tough stance on cryptocurrency, other governmental agencies in the country are investing in blockchain through any company - large conglomerates or startups - that can offer a real-world, process-improving use case.

Fleta, another blockchain startup building a platform for DApps, is benefiting from governmental initiatives, having being selected for a blockchain proof-of-concept project, involving the development of a clinical trial data collection system its own blockchain.

It's hard to tell if South Korea will be home to the next wave of blockchain billion-dollar multinational companies, and that makes the blockchain space in the Asain country a good one to watch.

As of now some countries - notably the United States and China - are ahead of South Korea with regard to business development for blockchain, according to Fleta CEO Seungho Park, pointing at local Korean venture capitalists' reluctance to invest in local blockchain startups as a challenge.