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[Delio] Digital assets could add $1.4 trillion a year to Asia’s GDP | Exclusive Korean crypto market insights

Back in 2018, the cryptocurrency fever affected Asian population with a high level of excitement and has been rapidly growing ever since then hosting about 60% of the world’s population in the investment industry.

It is worth to mention that about 31% of cryptocurrency transactions occur across East Asia and 6 in 10 of the top tanking crypto exchanges are based in Asia, including South Korea, one of the leaders in the crypto market. What’s more interesting is that blockchain experts claim that Asian economy makes a meaningful impact on how the metaverse takes shape globally and will continue to skyrocket.

Notably, Deloitte, a major global provider of audit and assurance, estimates the metaverse might increase Asia’s GDP by $1.4 trillion annually by 2035. The global financial services company noted that the metaverse market may be $13 trillion by 2030.

But what exactly does the digital assets industry make so attractive to crypto enthusiasts?

Let’s figure out together!

Metaverse records: Asia Pacific reaches metaverse all-time high use

The idea of merging digital and physical worlds hit the world during the outbreak of the COVID-19 pandemic and has been drawing attention ever since then.

Local governments and companies are betting big on the potential of virtual worlds to connect with younger generations and provide the public more convenient ways to provide smooth transfer to the digital era.

According to a recent Deloitte analysis titled “The Metaverse in Asia: Strategies for Accelerating Economic Impact,” there is a trillion-dollar market opportunity for the metaverse in Asia. Hong Kong, India, Indonesia, Japan, mainland China, Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam are among the 12 Asian economies.

The research shows that the most metaverse application will double in a gaming section and approximately by 10% in online shopping, social media, conference, and aircraft maintenance reaching to 46.7% of the global use.

Asia Pacific metaverse market

South Korea-based metaverse projects ramps up global expansion

South Korea is now at a critical point. The country has been successful in developing into a technologically advanced economic powerhouse including high-developed innovation system.

To be more precise, by developing a thorough strategic plan to support its metaverse business, South Korea took the lead and is on track to overtake China as the fifth largest metaverse market by the year 2026 generating a net revenue of $36–67 billion per year. (1)

South Korea metaverse market in numbers

As a high-income country, the cost of the necessary immersive hardware may, on average, have less of an impact on the economic impact of the metaverse.

As the K-POP culture hits the globe, ZEPETO, a metaverse owned by Naver and the largest metaverse platform in Asia, is stepping up its global expansion in an effort to provide fast-growing creator marketplace for virtual trends.

Notably, on September 2022 ZEPETO has host more than 200 countries worldwide and a total of 340 million users since its official launch in 2018. Despite the fact that nearly 90% of the metaverse uses overseas, the total number of application local downloads has surpassed 100 million, which is around 10 times more than the number of downloads for SK Telecom’s Ifland, securing the market leader’s position. (2)

Zepeto user growth

Naver, the biggest South Korea online search platform, claims that ZEPETO first grew quickly after its introduction but has recently shown a rather gradual trend. It had an operational loss of 29.5 billion won and a net loss of 112.9 billion won the previous year. Although the metaverse is still in its infancy, Naver Jet intends to keep making substantial expenditures to expand ZEPETO outside Asia.

ZEPETO’s growth has been driven by joining hands with global fashion brands such as Christian Dior, Gucci, Nike and Ralph Lauren, vehicle provider Hyundai Motor. According to the company, local entertainment companies including JYP and YG, have joined the metaverse through ZEPETO.

Ifland is another major player on the metaverse market created by the South Korean mobile carrier SK Telecom.

SK Telecom started targeting the global market by simultaneously launching the metaverse platform e-friend, introduced in July of last year, in 49 countries including North America, Europe, the Middle East, and Asia. SKT has set a goal of developing joint content with overseas partners and strengthening the communication function within the service to grow Ifland into the world’s №1 social metaverse.

South Korea lights up the way in metaverse development

While competing with other nations for first place in the development of the metaverse, South Korea has significantly distanced itself from them.

According to conference insights which was held at the Korea Press Center in Jung-gu, South Korea on November 14, metaverse has a positive impact on the job demand creating approximately 400,000 additional working spots while generating a total surplus of over $10 trillion. (3)

Recently, the ministry established a $172 million fund in February with the goal of expanding the neighborhood’s virtual world ecology and establishing the area as the global leader in metaverse adoption.

To this regard, local government opened a metaverse project called Cheongna International City Lake Park via the platform ZEPETO and exceeded the visitors amount of 80,000 for the first month of operating. The project mirrors the real version of the Cheongna Lake Park, one of the largest park in South Korea, where visitors can participate take a virtual ride on a duck boat and play games.

Cheongna International City Lake Park

KEB Hana Bank, a commercial bank headquartered in Seoul, joining hands with ZEPETO launched ‘Hana Card World’, a virtual world enabling music concerts, high user engagement and more.

Hana Bank Metaverse

Korean government expects to storm the globe by offering the principle of authenticity, inclusiveness, respect for privacy, and fairness.

Source:

1. https://www2.deloitte.com/content/dam/Deloitte/sg/Documents/about-deloitte/sea-about-deloitte-c4e-the-metaverse-in-asia-nov2022.pdf

2. https://www.m-i.kr/news/articleView.html?idxno=941912

3. https://zdnet.co.kr/view/?no=20221114174358

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Delio Digital Asset Finance Group, established in 2018, is №1 fintech company based in Seoul and acquired digital asset licenses from Korean and US governments.