Beyond Blocks: How to Enter the Korean Market

The Beyond Blocks summit held in Seoul on July 17th and 18th was a vibrant display of the newest global ICO projects that are reaching maturity. Many sponsor companies were brand new to the Korean market. For those who don’t know, Korea comprises the majority of volume in retail trades globally but is one of the most difficult for international ICOs to penetrate. As a result, the first panel discussion on the second day of the summit attempted to inform companies just what actions they should adopt and avoid while attempting to gain Korean investments.

The discussion featured Alex Shin from Hashed as the moderator, Erica Kang from KryptoSeoul, Dr. Jin Ho Hur from SEMA Translink Investment, Shinhae Lee from Block72, and Allen Koh from Medibloc. The discussion started off quite focused with a clear agenda as Shin respected the time limit and the multi-faceted issue they were about to address. All of the well-informed and respected participants are active members of the Korean crypto community.

Moderator: Where is the market at today? Why did Korea get so big on transactions?

Lee: Koreans are generally open to new assets and investment in real estate and security domestically. Although gambling is illegal here, people still want to invest in crypto and feel the rush of a risk.

Moderator: Why are there so many ICOs in Korea?

Koh: The level of Korean investment isn’t big compared to other players. With ICOs Korean companies can gain global investment. There are over 500 companies preparing reverse ICOs here now.

Lee: Companies prefer ICOs over equity because it’s easier and faster and requires far less due diligence.

Their responses were somewhat troubling in a number of ways. Koh’s detail about reverse ICOs should alarm investors here. Are those companies failing now so they need an ICO, or are they just looking for a larger fiscal cushion? Lee’s comment insinuates that ICOs are quicker and dirtier than the traditional alternative. That dirtier part is what troubles lawmakers.

Moderator: Why are you all based in Korea?

Lee: I moved here because my clients and many other companies were interested in getting into Korea. When they come here, however, they lack adequate [due diligence]. A big mistake projects make is something like: “I’m coming here next week. Can you make an intro to me with exchanges and major players?” That can’t be the strategy you employ.

Kang: My company helps make events for various blockchain companies. Because of the importance of this week, it’s been very busy. The problem is that companies contact us with just a few days to organize events or meetings for them. It’s difficult to explain to them that Korean investors don’t prefer to meet totally unfamiliar companies.

The discussion turned into an open discourse on the many mistakes ICOs make when coming to Korea. There was a consensus around a few points: Referrals are more important than technical specs. A community of followers who publicize ICO accolades will always precede meetings with exchanges. Failing to impress at an exchange meeting ensures you will not have a follow-up meeting.

In general the panelists discussed issues which are common sense to Koreans and which are no surprise to those who have been raised in the Korean market. It was basically to impart some cultural sensitivity to a market which so far lacks both sensitivity and a distinctive culture.