Only 22% of South Korean Blockchain Firms Achieved Sales: Study

Asia Blockchain Review
September 15, 2019
Only 22% of South Korean Blockchain Firms Achieved Sales: Study

The Software Policy and Research Institute has published a report which discovered that only 22.2% of blockchain businesses were able to log sales in 2018. The Institute is affiliated with the government-backed National IT Industry Promotion Agency.

Raising Doubts About Commercial Blockchain

The findings of the “2018 Software Industry Survey” suggest that although blockchain is gaining in popularity and drawing corporate interest, this has yet to manifest in actual sales revenue. Only 44 out of 198 (22.2%) blockchain-centric investments included in the survey led to sales.

The study found that although the majority of these blockchain companies (141) were involved in IT services, only 16 of them (11.4%) reported sales in 2018. By contrast, all internet software firms in the survey earned sales, while 22 out of 50 IT services were able to book business.

Blockchain Underperforms Compared to Other Technologies 

According to a report by CryptoNewsZ, the results were the worst performance in the study so far, comparing unfavorably against cloud computing service providers, which achieved as much as 60.2% sales from new software and services last year.

The data also suggested that blockchain does not play a significant role in overall technology development. It was found that only 8.4% of new software businesses are based on or engaged in blockchain, compared with 43.5% in cloud computing, 27.9% in big data, and 25% in the Internet of Things (IoT).

The cryptocurrency sector in South Korea hasn’t fared any better. In a recent report, Business Korea stated that several local South Korean cryptocurrency exchanges are facing bankruptcy as a result of inadequate transaction volumes. Only five or six exchanges made the cut of the world’s top 100.


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