Ignas, a decentralized finance (DeFi) researcher and content creator, published a blog post delving deep into the Korean crypto culture. The researcher shed light on Korea’s preference for crypto over DeFi, pointing out the possible reasons for the country’s negligence of DeFi.
In the article titled “Korean Crypto Culture: Why Koreans Love Crypto, But Not DeFi,” published on July 13, Ignas asserted that the Korean crypto market held a major position in Bitcoin trading, which led to the phenomenal “Kimchi Premium.” The term, derived from the name of a Korean dish, refers to the difference in crypto prices between South Korean and foreign exchanges. According to the researcher, the Bitcoin “fever” still exists, even after clamping down the Kimchi Premium.
In 2022, Korea, following the US and Japan, secured the third position in Bitcoin trading volume, accounting for 8.7% of the market. The US with the first position in trading held 6.8% while Japan holding the second position accounted for 11.3%.
However, Ignas’ research identified that the Koreans’ interest in DeFi is comparatively minimal, despite the efforts of the nation’s major blockchain companies. He asserted that the country’s higher trust in the financial system and inclination to use centralized exchanges (CEXs) like Upbit and Bithumb might be a major reason for their aversion towards DeFi. He explained, “Compared to CEXs, DeFi is difficult to use: setting up the wallet, safeguarding private keys, withdrawals and deposits are ‘annoying’ and DeFi apps themselves have UI/UX that are not adapted to the Korean market”.
In addition, Ignas stated that the DeFi jargon is complex and is targeted toward English speakers. He pointed out that adequate training in the system is obligatory for understanding the space. The “lack of educational content in Korea” could be another significant reason for their lack of interest in DeFi.
