South Korea’s Biggest Multi-Billion Dollar Conglomerates Join the Cryptocurrency Market
This Move Already Started
Most of the biggest multi-billion dollar conglomerates based in South Korea dealing with various issues such as telecommunications, insurance, internet and also gaming are joining the cryptocurrency market through the funding of the upcoming exchanges. These corporations have funded Bithumb, Upbit, Korbit and many more and wanted to be at the forefront of Blockchain development.
NHN and OKCoin
The NHN entertainment corporation is a $1.2 billion corporation started in 2013 and operated under Hangame Communications from 1999 to 2013. This is the largest gaming conglomerate based in South Korea with a valuation of 1.29 trillion.
On the 21st March, local cryptocurrency media made reports that NHN was involved in funding OKCoin which was the largest cryptocurrency exchange in China before the Ban.
Therefore, during an interview with a Blockchain Media based in South Korea, Cho Jeong-hwan made reports that they were involved in the finalization of plans for cryptocurrency expansion. He additionally, he said that this would help to kick-start in March. This is meant to handle more than 60 cryptocurrency pairings. This will be more than Bithumb.
Cho also said that all the major technologies used in OKEx, Binance, and Huobi would be used in the system of the OKCoin Korea.
Additionally, the OKCoin team will start with full-time developers and employees and might expand according to the South Korean Market growth. On the other hand, NHN investment partners who are a subsidiary firm of the NHN entertainment has made investments in the project with an undisclosed amount to enable OKCoin launch. OKCoin operated in China and moved to Hong Kong with 100 developers.
Upbit and Kakao
OKEx ambitious plan is to expand the services to South Korea and compete with Upbit. Upbit is operated by Dunamoo, which is Kakao subsidiary organization which runs on KakaoStock which is the most popular stock brokerage application based in South Korea. Kakao had however refrained from involving themselves in the cryptocurrency market due to regulations.
Therefore, Kakao entered the cryptocurrency market through Dunamoo through the Upbit launch in 2017. Therefore, after few months, Upbit dominated the market because it was the only crypto-based trading venue in the country.
Upon growth of Upbit, Kakao executives joined Upbit to lead the corporation to the cryptocurrency market. In Feb 2018, Chosun which is a South Korean newspaper announced that Kakao communications director joined for the growth of the corporation.
Therefore, the Upbit made Kakao majorly target the local cryptocurrency market. As Cointelegraph reported, the main aim of Kakao trough their discussion with regulators was to integrated major cryptocurrencies and served more than 12,000 merchants and more than 100 million users.
FSC chairman Choi said:
“Even if there is no prohibition on cryptocurrency or digital asset trading, there is a possibility that it [Kakao ICO] may be regarded as fraud or multi-level sales according to the issuance method. Since the risk is very high in terms of investor protection, the government has a negative stance on the ICO.”
SK Telecom, Nexon, and Korbit
Nexon which is the biggest South Korean gaming corporation valued at $11.5 billion acquired Korbit for $120 million. NXC which is the parent corporation of Nexon was involved in the purchase of 65.19% of Korbit and now is the majority owner.
SK telecom which is considered South Koreans telecommunications organization valued at $17 billion first invested in Korbit alongside Tim Draper. NXC purchased over 65$ of the corporation because the other major investors and SK Telecom were not willing to sell their shares.