Multiple South Korean retailers, such as Lotte and Hyundai, are discontinuing their non-fungible token (NFT) ventures, dealing a significant blow to the industry.
According to reports from Herald Kyungjae, Lotte Home Shopping, the e-commerce division of the retail conglomerate Lotte, is shuttering its NFT trading platform.
Large South Korean Retailers Close Door on NFTs
Lotte introduced its NFT Shop platform just over two years ago, in May 2022. However, the company announced on June 12 that it will cease its NFT shop services on July 2.
Accessible through the Lotte Home Shopping mobile app, the platform was envisioned as part of the company’s mid- to long-term strategy to establish a metaverse platform, as reported by the media outlet.
Setting itself apart from most NFT trading platforms, NFT Shop utilized fiat KRW as its transaction currency, aiming to make it more accessible and convenient for non-crypto holders.
To bolster the shop’s popularity, the company launched its own line of NFTs featuring its corporate character, Bellygom. Lotte Home Shopping collaborated with the Lotte Group-owned crypto startup Daehong Communications for this venture.
Initially releasing the NFTs on the Polygon (MATIC) blockchain network, Lotte Home Shopping later expanded its NFT partnership with Daehong.
Additionally, the company developed NFT collaborations with its virtual influencer, Lucy, as well as the popular 2022 horror movie “The Witch: Part 2. The Other One.”
Lotte Home Shopping had also initiated plans to enable secondary NFT sales on Opensea, the world’s largest NFT trading platform.
Companies Will ‘Focus on Core Business Areas Instead of NFTs’
According to the media outlet, Lotte Home Shopping’s closure of NFT Shop signifies its complete departure from the NFT sector. The company will transfer all remaining NFT business interests, including Bellygom NFT, to Daehong.
This move follows closely after Hyundai Department Store’s exit from the market. Hyundai had also introduced its NFT wallet services (H.NFT) in 2022, providing customers with discounts and free gifts.
Meanwhile, another retail powerhouse, Shinsegae, has significantly reduced the scale of its NFT offerings. An industry insider, who chose to remain anonymous, conveyed to the media outlet:
“At the outset, retailers eagerly embraced the NFT business. However, with the slowdown in the NFT market, they are now shutting down their platforms one after another. Instead, they’re concentrating on enhancing the competitiveness of their core business domains.”
