Digital Capital Raising - South Korea

  • South Korea
  • The Digital Capital Raising market market in South Korea is expected to reach a total transaction value of US$464.70m in 2024.
  • In South Korea, MarketMarketplace Lending (Consumer) is set to dominate the market with a projected total transaction value of US$405.60m in 2024.
  • When comparing globally, it is evident that the United States leads with the highest cumulated transaction value amounting to US$36,370m in 2024.
  • South Korea's digital capital raising market is rapidly growing, with blockchain technology playing a pivotal role in fundraising activities.

Key regions: Brazil, Germany, United States, United Kingdom, China

 
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Analyst Opinion

South Korea has seen significant growth in its Digital Capital Raising market in recent years.

Customer preferences:
South Korean investors have shown a strong interest in digital capital raising, particularly in the form of Initial Coin Offerings (ICOs). This can be attributed to several factors. Firstly, South Korea has a high level of technological adoption and a tech-savvy population, making it an ideal market for digital investments. Additionally, South Koreans have a strong affinity for cryptocurrency trading, with a large number of individuals actively participating in the crypto market. This familiarity with digital currencies has translated into a willingness to invest in ICOs and other forms of digital capital raising.

Trends in the market:
One of the key trends in the South Korean Digital Capital Raising market is the increasing number of blockchain projects being launched. South Korea has become a hotbed for blockchain innovation, with numerous startups and established companies exploring the potential of this technology. This has led to a surge in the number of ICOs and other forms of digital capital raising, as companies seek to raise funds for their blockchain projects. Another trend in the market is the growing interest from institutional investors. Initially, digital capital raising in South Korea was primarily driven by retail investors. However, as the market has matured, institutional investors have started to take notice. This can be attributed to the increasing regulation and oversight in the market, which has provided institutional investors with a greater level of confidence in participating in digital capital raising.

Local special circumstances:
South Korea has a unique regulatory environment when it comes to digital capital raising. While the government has taken steps to regulate the market and protect investors, there is still a level of uncertainty and ambiguity surrounding the regulatory framework. This has created challenges for companies looking to launch ICOs or other digital capital raising initiatives, as they must navigate the regulatory landscape to ensure compliance.

Underlying macroeconomic factors:
The growth of the Digital Capital Raising market in South Korea can be attributed to several underlying macroeconomic factors. Firstly, the country has a strong economy and a high level of disposable income, which has created a favorable environment for investment. Additionally, South Korea has a well-developed financial sector, with a robust banking system and a large number of investment firms. This infrastructure has facilitated the growth of the digital capital raising market by providing investors with the necessary tools and resources to participate in these opportunities. In conclusion, the Digital Capital Raising market in South Korea has experienced significant growth in recent years. This can be attributed to customer preferences for digital investments, including ICOs and other forms of digital capital raising. The market has also been driven by trends such as the increasing number of blockchain projects and the growing interest from institutional investors. However, there are also local special circumstances, such as the regulatory environment, that companies must navigate. Overall, the growth of the market can be attributed to underlying macroeconomic factors, including a strong economy and a well-developed financial sector.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

Overview

  • Capital Raised
  • Average Deal Size
  • Global Comparison
  • Number of Deals
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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