SEOUL, South Korea, Saturday, August 17, 2024- South Korean banks are continuing to pursue non-fungible token (NFT) projects, even as the broader market experiences a downturn and other major firms abandon the sector.
Despite a decline in the global NFT market, major South Korean banks such as Shinhan, Kookmin (KB), NongHyup (NH), Hana, and Woori Bank are bucking the trend by expanding their NFT offerings.
Telecom giant KT and tech titan Naver have recently shuttered their NFT businesses, and Lambda256, a subsidiary of the crypto exchange operator Dunamu, reported a net loss of $4.7 million last year, largely due to its NFT-related ventures.
An official noted that while NFT trading has stagnated, the cryptoasset trading market in South Korea continues to grow.
The official explained that user accessibility remains a challenge, as many people are unfamiliar with NFT trading. However, banks are pressing ahead, seeking new revenue streams in the evolving digital landscape.
Shinhan Bank has been active in the NFT space, focusing on sports and gaming-themed projects, including a “membership NFT” for the Com2uS mobile game Com2uS Pro Baseball 2024.
Woori Bank has also explored NFT tie-ins, offering promotional NFTs linked to bakery products at CU convenience stores.
Despite the challenges, South Korean banks remain committed to their NFT strategies, hoping to capitalize on future market developments. However, some bank officials express caution, warning that potential partners in the NFT space are becoming scarce.
