Despite NFT Decline... Telecom Companies Compete in 'Future Investment'

Certificate·Digital Goods,
Racing to Dominate Platforms

KT Joins Commercialization Efforts
SKT Integrates with Ifland
LG Uplus Targets Market with Muneo

[Asia Economy Reporter Minyoung Cha] As the virtual asset market continues to plunge, the rapidly growing non-fungible token (NFT) market is also experiencing a downturn. However, the three major telecom companies are jumping into the NFT competition, heating up the market. Instead of short-term investment demand, they are focusing on future value such as certificates and digital goods to expand customer experience and marketing effects, aiming to secure platform dominance.

KT Joins the NFT Battle

On the 24th, KT announced that it will start with the ‘Odaejang NFT,’ which utilizes intellectual property (IP) of KT-affiliated sports players on its own NFT issuance, distribution, and trading platform ‘Minkle.’ In the second half of the year, KT plans to commercialize hotel vouchers as NFT products. In the future, KT Group intends to NFT all its assets and sell them in the form of digital goods. A KT official said, "For example, if a hotel voucher that is used up in one day is made into an NFT and provided, engraving the date together can offer a more special experience to customers," adding, "By linking with Kakao Klaytn, it can be stored in a digital wallet, increasing its usability."

SK Telecom is preparing to integrate NFTs into the metaverse (extended virtual world) space called ‘ifland.’ Within a few months, they plan to install an NFT system that allows users to issue NFTs themselves and generate revenue within the platform. Additionally, by adding a blockchain system, they aim to create a world inside ifland where users can freely trade and settle payments for NFT items.

LG Uplus has been expanding its community-type NFT business since May with the octopus character ‘Muneo’ NFT. Muneo is a character from LG Uplus that is very popular among younger customers such as elementary and middle school students. LG Uplus plans to open exclusive community channels for Muneo NFT holders through social networking services (SNS) like Discord and Twitter, as well as the official Muneo community. This is a private space accessible only to those who hold Muneo NFTs. An LG Uplus official said, "It was so popular that 200 pieces sold out in just 2 seconds," and added, "There are plans to issue a second round of NFTs in the second half of this year." As CTO Sangyeop Lee of LG Uplus previously stated, "We will initially issue NFTs based on the Klaytn mainnet, but we are also considering developing our own private mainnet," it is interpreted that they are keeping the option open for self-issuance.

NFTs: Investment Drops Sharply but Still a Future Industry

According to the virtual asset information platform ‘The Block,’ the global NFT market’s transaction volume last month was $4 billion. This is a 76% decrease compared to the record high of $16.5 billion in January this year. It also shrank by nearly 44% compared to the previous month. The NFT market, classified as a risky asset, appears to be experiencing a bubble burst following cryptocurrencies.

It is noteworthy that the three major telecom companies are expanding their NFT businesses despite the global NFT downturn trend. They plan to use NFTs not only to generate short-term profits from sales but also as an entertaining element to attract the MZ generation (Millennials + Generation Z) from a marketing perspective.

This content was produced with the assistance of AI translation services.