Busan to Host Blockchain Week in Busan 2023 Next Month

With Bitcoin prices hitting an all-time high, the daily crypto trading volume in South Korea has surpassed that of the stock market, local media outlet The Financial News reported.  As of yesterday at noon (KST), the local daily trading volume of cryptocurrencies over the past 24 hours stood at over KRW 11.8 trillion, or nearly $9 billion, according to data from crypto platform CoinMarketCap. Meanwhile, the daily trading volume on the Korea Composite Stock Price Index, or KOSPI, was KRW 11.4 trillion on Friday.  The total daily crypto trading volume was tallied by adding trading volume across Korea’s five major crypto exchanges – Bithumb posted KRW 8.8 trillion, Upbit KRW 2.7 trillion, Coinone KRW 176.4 billion, Gopax KRW 55.2 billion and Korbit KRW 32 billion. Photo by Alexander Mils on UnsplashUnlike stock markets which have a closing time, crypto assets are traded 24/7, which makes it difficult to do an apple-to-apple comparison. Still, the numbers clearly demonstrate retail investors’ bullish sentiment toward the crypto market.  According to the U.S. crypto exchange Coinbase, the Bitcoin price touched $70,199 on Friday (UST), just three days after the flagship coin surpassed $69,000 on March 5, an already record-breaking price in 28 months since November 2021.  Inflation and recession drive retail investors to crypto Financial experts say that Korea’s persistently high inflation and slowing economic growth are driving local retail investors to seek relatively riskier yet high-yielding assets such as cryptocurrencies. Young investors in their 20s and 30s are particularly leaning towards investing in crypto, as they fear not being able to buy houses solely with their wages. Moreover, Koreans’ average monthly real wage declined by 1.1% year-on-year, which marks a continuous decline for two consecutive years since 2022.  Despite the country’s economic slowdown, the KOSPI has actually risen, fueled by capital influx from foreign investors who are expecting a valuation increase in local firms. In contrast, local retail investors are rushing out from the stock market as they see a lack of outperforming companies.  Data from the Korea Exchange (KRX), the sole securities exchange operator in the country, showed that foreign investors purchased KRW 4.4 trillion in stocks over the past month on the KOSPI market, while local retail investors sold KRW 3.3 trillion worth of stocks during the same period.  Local crypto boom prompts ‘Kimchi Premium’ effectThe recent bullish sentiment in the Korean crypto market can largely be attributed to local retail investors, because current laws prohibit foreign investors from trading crypto assets in the country and regulations limit enterprises from making direct investments in crypto.  While the KOSPI market grapples with the so-called Korea Discount effect, which refers to the undervaluation of the Korean stock market, the local crypto market is experiencing the exact opposite trend – crypto investors are benefitting from something called the Kimchi Premium effect, a newly coined term referring to the overvaluation of crypto assets in Korean crypto markets compared to those in their foreign counterparts. As of yesterday at 14:00 (KST), Bitcoin changed hands at KRW 917.4 million on foreign exchanges while at KRW 971.8 million on Korean exchanges, per data from local crypto exchange Upbit.  Cho Dong-keun, a professor at the Economics Department at Myongji University, described the current Korean economic situation as “a competition for the country’s limited wealth”. He said that the stagnant national growth has pushed people to fight for more wealth, urging them to invest in crypto assets, adding that Kimchi Premium could substantially appeal to many retail investors.   

Raon Whitehat Enables College Students to Hone Skills Through MetaverseRaon Whitehat, a blockchain-based service provider of South Korean tech security firm RaonSecure, is set to launch Raon Metademy, a cutting-edge metaverse-powered professional training platform, for universities.Inviting beta testersToday, Raon Whitehat announced the successful completion of the beta version of Raon Metademy, developed in collaboration with edtech company Globepoint. The company is now inviting beta testers from university departments and educational institutions to participate.Interested universities can apply on the Raon Metademy website, with beta testing planned until the end of August. During this period, Raon Whitehat will gather valuable feedback to further enhance the platform. The official launch is scheduled for September 1 to support university classes.Effective remote practicesRaon Metademy boasts a metaverse-based training approach, offering users access to a virtual campus where they can attend lectures and practice essential skills. The platform’s highly immersive user experience allows students to create personalized avatars, explore the campus, access announcements, have a look at training courses, and utilize the training room. With vivid 3D visuals and realistic video-based exercises, students can effectively practice their skills from remote locations.Additionally, users can set up private labs to address their weaknesses, engage in discussions, and build a community similar to a physical campus environment. Among the confirmed beta testers are Chung-Ang University and Seoul Women’s University, and the application window for other institutions will remain open until mid-August. The initial beta service will focus on nursing skills, physical therapy, and security practices, with plans to expand the content to include caregiving practices and more.Photo by Nhia Moua on UnsplashDigital credentials and NFTsRaon Metademy aims to provide certificates of completion and awards of excellence in the form of digital badges, simplifying the process of submitting credentials to universities and other organizations. The platform will also introduce non-fungible tokens (NFTs) to benefit content providers, facilitating secure trading of educational materials among students.Leveraging RaonSecure’s cutting-edge technologies, including blockchain and NFTs, Raon Metademy aims to become a versatile platform open to content providers, educational institutions, and individuals alike. This will enable students to access a diverse range of captivating lessons from anywhere and give lecturers the ability to earn income by delivering high-quality hands-on training with minimal equipment and material costs.

According to crypto data research platform Xangle, the crypto market is on the road to recovery this year thanks to positive outlooks on developments like a spot Bitcoin ETF, regulatory changes and diversified services.Photo by CHUTTERSNAP on UnsplashBitcoin’s resilienceSpeaking at a special seminar on virtual assets co-hosted by CrossAngle and accounting firm Samjong KPMG in Seoul last Friday, Kim Jun-woo, Co-Founder and CEO of Xangle, cited Bitcoin’s positive reputation as one of the reasons for the optimism. "There are reports that Bitcoin has a low correlation with risky virtual assets," he said. Public sentiment toward Bitcoin is also expected to improve this year as the global economy is expected to emerge from recession and manage a soft landing. Another major item on the agenda is a possible approval by the U.S. Securities and Exchange Commission (SEC) of a spot Bitcoin ETF this quarter. Web3 revolutionIn terms of innovative services, Kim stated that Web3 is expected to be actively implemented in local corporations after going through conceptual and technical testing stages. "In South Korea’s crypto market, (resources like) app stores and mobile phones exist, but there are no actual apps," Kim said. "I expect that figures from traditional finance and existing Web2 companies will enter the Web3 industry this year."  "Web2 companies will discover new business opportunities in Web3 and play a role in bringing existing content and users to Web3," said Lee Hyun-woo, Co-CEO of Xangle, in his presentation on the importance of Web3 system integration and virtual asset disclosure. "Their participation is important for the stable maturation of the Web3 ecosystem," he added. Regulation and governanceIn regards to policies and regulations, expectations point to a resolution of various uncertainties as cryptocurrencies are slowly becoming more integrated into the sphere of traditional finance. In South Korea, the imposition of basic legal regulations on virtual assets is accelerating, such as the Virtual Asset User Protection Act. The Financial Services Commission (FSC) also released guidelines for accounting and disclosure of virtual assets last month, which was examined in detail at the seminar. "The financial authorities' guidelines are more detailed than before. We expect additional guidelines from them in the future to further resolve shortcomings," Choi Yeon-taek, Managing Director of Samjong KPMG, commented.