S.Korean conglomerates look to paint future with NFTs

The non-fungible token (NFT) ecosystem has penetrated into mainstream society. NFTs are digital assets that represent objects in the physical world, be it art, music, or real estate, that cannot be tampered with or replicated. 

South Korean industry heavyweights, mainly the big family-run conglomerates, or chaebol, are following the worldwide trend of incorporating digital assets into their business strategies.

Samsung Electronics Co. is one of them. 

The pinnacle of the Samsung Group set up an NFT art exhibition in New York in time for the NFT NYC. The world’s biggest NFT event began on June 21 and runs through this Friday. 

Visitors can check out the digital works displayed on Samsung TV monitors and purchase them at the venue. 

The electronics giant will also unveil its blockchain wallet on Thursday. 

Hyundai Motor Co., for its part, is slated to show a teaser image of its second token, Plasma.

Despite the rapid decline in cryptocurrency prices and a contraction in the NFT market, its userbase is steadily increasing. 

The number of NFT holders has jumped fivefold in a year from last June’s 500,000 to 2.46 million this month, according to analytics platform NFTGo. 

NFT serves as a tool to connect the physical world with the metaverse.

For instance, sports apparel manufacturer Nike Inc. announced last December that it acquired RTFKT, a leading NFT-based sneakers designer.  

LVMH Moët Hennessy Louis Vuitton, which owns Louis Vuitton, Dior, and other high-end labels, as well as Prada S.p.A., plans to use NFTs in the authentication of its products. 

MoonPay co-founder and CEO Ivan Soto-Wright gave a keynote speech at the New York event and said “The potential of NFTs goes beyond collecting.”

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“Everyone getting ready for NFT NYC?”

Samsung US' Discord channel was abuzz with excitement ahead of the opening of the New York event. 

There are currently more than 13,000 participants in the channel and the electronics giant is eager to turn them into long-term holders of the digital arts. 

The Samsung 837, a contemporary showroom and store located in the city’s Meatpacking District, has been turned into an art gallery for NFT holders. 

Earlier this year, the company showcased Smart Hub, an NFT trading platform using a Samsung TV monitor at the CES 2022 Las Vegas.

Samsung Next, for its part, injected capital into Metaplex, which built a protocol that includes an ecosystem of smart contracts and tools designed to make the process of creating and launching NFTs easier.

Hyundai Motor Corp. also recently opened a Discord channel and secured some 5,000 users so far. 

Last month, it issued 10,000 Meteor NFTs to be used in its Metamobility Universe.

During the New York event, it will show a teaser image of its second NFT Plasma.

The other chaebol, SK Inc. and Lotte Corp. are looking beyond tokens to NFT trading platforms. 

SK C&C is developing a service in which users can easily mint and trade tokens. 

Lotte Data Communication has launched a new division called NFT Lab in April and also building a trading platform based on the expertise of its recently acquired metaverse firm Caliverse.

Other conglomerates, still, are adopting the NFT’s non-fungible qualities into their existing businesses. 

Kakao Entertainment Corp.’s music streaming platform Melon has minted and issued a limited amount of Melon Music Award NFTs and turned its music recommendations into tokens as well.

Shinsegae International and Hyundai Department Store have designed wearable NFTs for profile images and created NFT wallets to give gifts with promotional codes.

The trend is also seen among US companies. 

Starbucks Corp. began developing an NFT community and collectibles based on its existing image to strengthen consumer loyalty. 

eBay Inc. began sales of NFTs last month and built a massive digital safe dedicated to storing NFTs.

Write to Da Eun Choi, Joo-Wan Kim, See-Eun Lee at max@hankyung.com
Jee Abbey Lee edited this article.