South Korea's Crypto Market Overview: How Largest Banks and Conglomerates Back Exchanges

The crypto market and blockchain sector of South Korea, the third-largest digital asset exchange market in the world behind the United States and Japan, have some of the most robust systems and infrastructure in place to protect investors and facilitate the growing demand for cryptocurrencies.

Samsung - the biggest conglomerate in South Korea that has dominance over the insurance, real estate, electronics and payment sector - has been allocating most of the resources of its crypto and blockchain department in maintaining its cryptocurrency ASIC miner manufacturing foundry.

Unlike startups, 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.

Conglomerates are incentivized to run crypto exchanges and blockchain initiatives because the government of South Korea has recognized digital asset trading platforms as regulated financial institutions and established blockchain technology as one of the three pillars of the Fourth Industrial Revolution, alongside big data and artificial intelligence.

The company's CEO, Lee Sir-goo, stated that in the upcoming years, it will continue to build a bridge between the local crypto market of South Korea and the global market.

The unique structure of the local crypto exchange market in South Korea and the acknowledgement of the crypto exchange market as a legitimate industry led more investors to enter the market, which is evident based on the volume of the local cryptocurrency market.

As Cointelegraph reported in July, the government of South Korea introduced its first cryptocurrency and blockchain legislation in history, after refusing to regulate the market.

Experts in the cryptocurrency market have stated that if the bill is passed in its current form without crypto-related businesses, it will negatively impact the economy of South Korea, as it will drive away investors from local exchanges and prevent venture capital firms from supporting the country's crypto exchanges.

While the decision of the venture enterprise division of South Korea remains to be seen, overall, the cryptocurrency industry of South Korea is thriving with the involvement of multi-billion dollar conglomerates and banks.

As regulatory frameworks around cryptocurrency exchanges and blockchain projects improve, with companies like SK, Samsung, LG, Hyundai and Kyobo involved, the crypto market of South Korea could be expected to grow at an exponential rate.