Naver·Kakao NFT Battle

[Asia Economy Reporter Kang Nahum] Naver and Kakao are strengthening their non-fungible token (NFT) businesses. They are focusing on expanding their ecosystems by establishing NFT-related companies and issuing their own NFTs to seize market leadership. They have also started generating revenue through NFTs issued using their own intellectual property (IP).

◆ All-in on NFT platform development = According to industry sources on the 17th, Naver affiliate Line established 'Line Next' in both South Korea and the United States at the end of last year to actively build an NFT ecosystem. The domestic entity is responsible for blockchain platform strategy and planning, while the U.S. entity manages the global NFT platform business operations.

Line Next aims to spread a new digital environment to users worldwide based on Line Blockchain and NFTs, providing innovative digital experiences. In particular, the U.S. entity plans to launch a global NFT platform leveraging Line’s global service expertise and excellent blockchain technology. Through this platform, companies and creators from various countries and regions will be supported to easily build NFT markets and services, while also creating an ecosystem where general users can trade NFTs or form communities.

Go Youngsoo, CEO of Line Next, said, "NFTs are a technological infrastructure that will create digital transformation and innovate user experiences across all areas including content, games, social, and commerce. We plan to lead services that realize the NFT ecosystem and the global popularization of NFTs together with various global partners."

Line will also officially launch the NFT market 'Line NFT' in Japan within the first half of the year. Currently, it is in beta service. The official version plans to add NFT product trading functions between users and integrate with Line Messenger to allow more convenient NFT exchanges with messenger friends.

Kakao’s blockchain affiliate Ground X recently reorganized its related teams to strengthen its NFT business. It transferred the cryptocurrency 'Klaytn' related business to another Kakao blockchain affiliate, Krust, to focus on the NFT business. Accordingly, Ground X will concentrate on nurturing the KakaoTalk-based cryptocurrency wallet 'Klip' and the NFT trading platform 'Klip Drops.'

Klip is a cryptocurrency wallet embedded in the 'More' tab of KakaoTalk, helping users easily exchange or store cryptocurrencies. Klip Drops is an art NFT trading service located within Klip, supporting easy distribution and storage of NFTs.

Han Jae-sun, CEO of Ground X, said, "NFTs are the fastest-growing area in the blockchain market and a core technology forming the metaverse economy foundation. Ground X’s NFT experience and capabilities are world-class, and we will become a company leading NFTs not only in Korea but also in the global market."

◆ Enjoying success by issuing own NFTs = Naver and Kakao are also seeing considerable success by issuing NFTs using their own IP. Last year, Line issued a total of 1,200 NFTs, 100 each of 12 images of the official Zepeto World map, Cherry Blossom Garden.

Zepeto is an avatar platform where users can enjoy social activities with 3D avatars. These NFTs were issued exclusively in Japan and were first sold at 500 yen each through Cryptogames’ NFT studio. They were later distributed secondarily on the beta version of Line Bitmax NFT market.

Kakao Entertainment issued NFTs of its flagship IP 'Solo Leveling (Nahongrep)' and achieved a remarkable sell-out within one minute of Klip Drops’ launch.

The NFTs released this time were two types: 100 main NFTs depicting the final scene of Solo Leveling’s finale and 200 sub NFTs showing the protagonist Sung Jinwoo as the strongest. The main and sub NFTs were sold for 500 Klay coins and 100 Klay coins respectively. This is interpreted as a synergy effect among users due to the premium of Solo Leveling’s '14.2 billion views' and the expectations for NFTs as future digital assets.

On the 22nd, they also plan to launch an NFT collection of the domestic NFT generative art specialist project Treasures Club and the webtoon 'Empty Shell Duchess.' A Kakao Entertainment official said, "With the emergence of new technologies such as NFTs and the metaverse, infinite possibilities are sprouting. As a leading force in the webtoon and web novel industry, we will plan diverse businesses that can combine premium IPs."