Jeju Island NFT Targets Crypto Expansion

South Korea’s Jeju Island, a renowned tourist destination, is set to introduce visitor cards powered by non-fungible tokens (NFTs) this year. The initiative aims to entice younger, tech-savvy tourists, particularly Millennials and Gen Z.

These NFT-linked cards will offer exclusive benefits, including discounts and travel subsidies. Domestic tourists may also receive subsidies, memberships, and discounts on local attractions, which will be redeemable in the region’s local currency.

Moreover, Jeju Island intends to use this card as a tool to encourage young people to explore the island and increase the probability of return visits. The card issuance will commence in the second half of 2025, beginning with a pilot program for domestic visitors.

In addition to the card launch, there is a plan to integrate the NFT project with Tamna Jeon, the local blockchain-based stablecoin. This token has been operational since 2019, playing a role in bolstering the local economy. It is utilized for rechargeable prepaid cards that offer incentives to both merchants and customers.

However, the blockchain that will power the digital collectible card remains undisclosed.

Jeju Island's Journey into Crypto Expansion

Over the years, Jeju Island has undertaken several initiatives to expand the crypto ecosystem within its jurisdiction.

In 2019, the island established the Blockchain Hub City Development Research Service to explore advanced blockchain applications. Within two years, it had successfully integrated blockchain technology into various public sector domains, such as traffic management systems and value-added tax (VAT) refunds for foreign tourists.

Four years ago, the island also endeavored to become a cashless international city, which led to the introduction of Tamna Jeon. Currently, there are efforts to integrate other cryptocurrencies, such as Bitcoin (BTC), into the local economy.

Obstacles in South Korea’s NFT Regulations

These new developments come as Jeju Island aims to bolster the crypto ecosystem based on its jurisdiction. As stated by Jeju Island Governor Oh Young-hoon:

“This year, we are gradually making preparations to focus on digital transformation. The core of all this is Web3. We can apply Web3, including the use of NFTs, to all areas of the government. This will be a step forward.”

Despite Jeju Island's endeavors in crypto-powered growth, it has encountered obstacles along the way. Many of these challenges can be attributed to the stringent regulations surrounding Initial Coin Offering (ICO) and NFTs in South Korea. However, authorities in the region are now pushing for a change.

In mid-2024, the Financial Services Commission (FSC) introduced new guidelines for NFTs. The aim of these guidelines is to distinguish NFTs from traditional cryptocurrencies.

At the time, the FSC noted that some NFTs might lose their uniqueness and begin to act more like cryptocurrencies. This stance raised concerns, especially regarding digital collectibles that are easily tradable and exchangeable.

As a result, several NFT-based businesses in South Korea were forced to close down. For instance, Lotte’s NFT Shop, which set itself apart by using the Korean won (KRW) as its transactional currency, was ultimately compelled to close on July 2.

Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.

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