Beyond the 'Kimchi Premium': Institutional Transformation in Korea
South Korea's crypto landscape is moving beyond the volatile "Kimchi Premium" era driven by retail speculation, according to Andrew Park, CEO of Factblock. Park, who organizes Korea Blockchain Week, notes a significant shift in the nature of international inquiries. Global institutions are now focusing on market access, asset custody, tokenization, stablecoins, and regulatory compliance, rather than just token listings and prices.
This institutionalization is being built through foundational, "unsexy" back-office work: developing corporate crypto accounts, legal finality for settlements, accounting standards, and custody solutions. Key regulatory steps include the Financial Services Commission's framework for corporate virtual asset accounts and National Assembly amendments to laws governing tokenized securities and real-world assets.
Park, with a traditional finance background, bridges the perspectives of Wall Street and Web3. He explains that traditional banks prioritize managing edge-case failures and regulatory reporting, which crypto-native firms sometimes misunderstand. Conversely, traditional financiers often overlook blockchain's systemic utility for 24/7 global settlement and programmable money.
Looking ahead, Park sees South Korea's next frontier at the intersection of AI and programmable blockchain infrastructure. He is particularly interested in the infrastructure needed for a "machine-to-machine" economy, where AI agents could autonomously conduct micropayments and transactions using on-chain settlement mechanisms—a concept already being explored in pilot projects by the Bank of Korea. With its advanced digital infrastructure and investments in both Web3 and AI, South Korea is uniquely positioned to develop this future.
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