Key Insights:
LG Electronics is set to enter the blockchain and crypto business.
Other South Korean tech giants like Samsung have already taken their first step towards crypto adoption.
South Korean markets have witnessed increasing activity over the last year.
Crypto adoption is in full swing across the globe, while institutions and corporations aim to capitalize on the growing sector. Of late, more and more top-tier firms from various sectors are jumping on the blockchain train to appease their customers and lure newer participants.
Another tech giant recently decided to jump on the bandwagon. LG Electronics has added cryptocurrency and blockchain devices as new business areas in its corporate charter.
Expanding Through Crypto and Blockchain
Heralding an expansion into new fields beyond home appliances, the South Korean tech giant LG Electronics has updated its business development goals to include cryptocurrency and blockchain-based software.
Local South Korean news media organization reported that LG had added two distinct crypto-related objectives during its annual general meeting on March 24. The new objectives include ‘the development and selling of blockchain-based software’ and ‘the sale and brokerage of cryptocurrency.’
LGs recent announcement has led people to wonder whether the firm would establish some form of crypto exchange or marketplace.
A spokesperson from the firm told local news organizations that ‘nothing has been decided yet,’ regarding building a crypto marketplace. According to reports, the company has merely mentioned business areas to expand broadly.
Notably, the tech manufacturer introduced smart television models with the NFT option last month with a blockchain company called Kakaos Ground X. LG had also announced a partnership with Seoul Auction Blue, an NFT-focused company, to carry out projects related to NFT-based artworks.
South Korean Market Looking Ripe
South Korea is a well-known hub for crypto trading activity. A recent survey highlighted that around 3.8% of the population owned some form of crypto assets. Furthermore, South Korean crypto providers booked a $2.7 billion net profit last year.
Seemingly the market offers good scope for growth for firms as demand for digital assets in the nation is on the rise. Earlier this year, LGs competitor Samsung announced that it would be launching an NFT platform for its smart TVs and its store in the Decentraland metaverse.
In South Korea, native blockchain platforms like Klaytn are seeing their domestic dominance dwindle, with competitors such as Polygon taking over the NFT marketplace.
Earlier this year there were rumors about LG creating a crypto-related marketplace emerged when Bithumb CEO Heo Baek-young confirmed that the exchange was working with ‘a large company’ to develop an NFT marketplace.
