KT Corporation, a massive telecommunications company with assets over $32 billion, recently made the decision to close its non-fungible token (NFT) platform, MINCL, signaling a change in the corporate landscape of South Korea. The business declared that as of March 4, the platform that allowed for NFT minting, trading, and wallet services will no longer be available. The closing of KT Corporation was attributed to “shifting business conditions,” signifying the withdrawal of yet another significant player from the web3 market.

NFT Holders of KT Wiz Rookie Pack Are Affected by MINCL Closure

Holders of KT Wiz Rookie Pack NFTs, digital card collectibles linked to the company-owned professional baseball team, have been encouraged by KT Corporation to move their assets to e-wallets outside of MINCL as part of the closure. Users can no longer see or download any remaining NFTs from the platform after the service conclusion date.

Launched in April 2022, MINCL offers a platform for institutional and retail customers to participate in NFT-related activities. The abrupt closure, though, begs the question of what difficulties and unknowns South Korean businesses are dealing with in the quickly changing web3 environment.

Problems with Web3 Go Beyond KT Corporation

Not all South Korean businesses are reconsidering their involvement in web3 ventures, including KT Corporation. Reportedly, the well-known game company Netmarble F&C fired all 70 workers in its metaverse section last month and is in the process of closing the business. The action was taken in spite of Bang Jun-hyuk, Chairman of Netmarble, who expressed confidence in the metaverse as a major business prospect in 2022.

In September 2023, Com2uS, a rival company, reorganized its Com2Verse metaverse subsidiary after disclosing operating losses of approximately $9.7 million during the third quarter of the same year. The reorganization signified a change in the company’s approach as it attempted to manage difficulties in the developing metaverse market.

Hyundai Department Store Has Terminated the H.NFT Digital Wallet Service

Another significant player leaving the web3 space is the Hyundai Department Store, a retail giant that is part of the Hyundai Group. By the end of March, the business intends to stop offering its digital wallet service, H.NFT. All of these choices point to a more thorough reevaluation of web3 projects in South Korean businesses.

According to Park Hye-jin, a metaverse technology expert at the Seoul School of Integrated Sciences & Technologies, executives might be reconsidering investments that haven’t produced significant returns in the near run. According to Park, “This kind of thing always happens when a large company challenges or starts new businesses based on FOMO (Fear of Missing Out).”

An Examination of Changing Priorities

Major South Korean firms have reevaluated their strategy and goals in response to changing market conditions, as seen by the closure of MINCL and other web3 subsidiaries. When evaluating the potential of new technologies like NFTs and the metaverse, businesses appear to heavily rely on short-term financial performance. These big firms’ withdrawal from web3 efforts raises concerns about the initiatives’ viability and profitability, given the state of the market.