South Korea Launches NFT Tourist Cards Despite Lack of Clarity on Crypto Regulation

Key Takeaways

• Jeju Island plans to issue 100,000 NFT-based tourist cards.
• These cards will offer subsidies and discounts to attract tech-savvy travelers.
• NFT popularity in South Korea has been declining since 2023.

In an ambitious move to attract younger, tech-savvy tourists, Jeju Island, South Korea’s renowned tourist destination, is introducing nonfungible token (NFT) tourist cards.

The initiative aims to revitalize the island’s tourism industry, particularly during the Chuseok holiday season in September.

Jeju Island Aims  to Issue 100,000 NFT Cards

Jeju Island, a self-governing province known for its scenic beauty, recently announced that it plans to issue 100,000 NFT-based tourist cards.

These digital cards will offer travel subsidies and discount coupons tailored to tourists’ itineraries. The project will undergo a trial phase before a full rollout in the latter half of 2025.

Park Yo-jun, head of the island’s tourism policy division, expressed optimism about the project:

“We plan to build an NFT-linked digital tourism resident card system in the first half of the year and conduct a trial run starting in the second half,” he said. “Our dedicated team is currently discussing the system’s construction, operation plans, and associated benefits.”

The digital cards aim to create a unique digital footprint for each tourist, enhancing their experience and encouraging return visits.

Jeju Island’s foray into NFTs began in March 2024, when local policymakers started exploring blockchain-based solutions to boost the regional economy. Despite the global NFT boom, South Korea’s NFT market has faced challenges, largely due to regulatory hesitancy.

Regulatory Challenges for NFTs in South Korea

South Korea’s conservative approach to crypto regulation has created an uncertain environment for NFT projects.

While crypto trading is allowed under stringent conditions, the lack of comprehensive regulation has stifled innovation and growth.

The NFT sector, in particular, has seen stricter government scrutiny, leading to a sharper decline in the Korean market compared to global trends.

The peak of the NFT market in 2022 was followed by a steady decline from 2023 onwards, exacerbated by the government’s ban on NFTs in gaming —a move that stifled the Web3 gaming industry.

As several companies ceased their NFT services due to a shrinking user base and regulatory ambiguity, Jeju Island’s NFT tourist card initiative stands as a test case.

Its success or failure could influence the national government’s stance on NFTs and shape the future of blockchain technology in South Korea.