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South Korea’s third-largest conglomerate, SK Group, announced plans to launch its own altcoin through its investment arm SK Square. This move positions SK Group as the first major South Korean financial conglomerate considering the issuance of cryptocurrency. The conglomerate is also developing a Blockchain service to facilitate the issuance for its partners. Both projects are in early stages, aiming to launch the altcoin within the year through an initial coin offering (ICO). However, since ICOs are currently banned in South Korea, SK Group is exploring options for foreign issuance or waiting for a more favorable regulatory environment as promised by newly elected President Yoon Suk-Yeol, who advocates for crypto-friendly regulations.
A Comprehensive Cryptocurrency Ecosystem Will Be Created
SK Square aims to create a comprehensive cryptocurrency ecosystem by leveraging various companies within the SK Group. According to South Korean news source Hankyung, SK Group initially plans to build the altcoin on the existing Blockchain infrastructure of the country’s largest wireless operator, SK Telecom, which is owned by the group.
The conglomerate will then expand its services to create a broader ecosystem where all SK Group companies are expected to adopt the new currency. Additionally, the altcoin will be integrated into SK Telecom’s metaverse platform ifland, further encouraging its use.
This move is not SK Group’s first foray into the cryptocurrency market. In November 2023, the conglomerate invested 90 billion South Korean won (73 million dollars) in Korbit, one of South Korea’s largest cryptocurrency exchanges, becoming its second-largest shareholder. Additionally, on May 15, SK Planet, a subsidiary of SK Square, signed an agreement with Korbit to develop new Blockchain projects. This partnership demonstrates SK’s ongoing commitment to advancing its presence in the cryptocurrency and Blockchain sectors.
Interest in Cryptocurrencies Among South Korean Companies Is Increasing
Cryptocurrencies have seen a significant rise in popularity in South Korea in recent years, becoming a crucial topic in the country’s recent Presidential elections. Both Presidential candidates engaged with the crypto-enthusiastic young demographic by offering NFTs linked to their campaigns. According to Statista, approximately 10% of South Koreans, or 5 million people, invested in cryptocurrencies in 2021.
With the rise in interest in cryptocurrencies, other major South Korean companies have also been exploring the Blockchain space. One of the country’s largest video game developers, Krafton, recently announced a partnership with Solana to enter the Blockchain gaming sector. This trend indicates the increasing integration of Blockchain technology and cryptocurrency into various sectors of the South Korean economy.
