KT Corporation Shuts Down NFT Platform MINCL Due to Business Conditions

Closure of MINCL Platform

South Korean telecom giant KT Corporation has decided to close down its non-fungible token (NFT) platform, MINCL, effective March 4. The decision, attributed to "shifting business conditions," is announced by the company, which holds over $32 billion in total assets. MINCL, operated under KT Corporation's digital transformation subsidiary KT Enterprise, offered NFT minting, trading, and wallet services for both retail and institutional users.

Guidance for NFT Holders

As a result of the platform's closure, KT Corporation has provided guidance to holders of KT Wiz Rookie Pack NFTs, digital card collectibles commemorating the company's professional baseball team. Users are instructed to transfer their NFTs to e-wallets outside of MINCL before the service conclusion date. After this date, users will not be able to view or download any remaining NFTs.

Web3 Reconsideration in South Korea

The closure of KT's NFT platform follows a trend in South Korea, where other companies are reevaluating their involvement in the web3 space. Game developer Netmarble F&C reportedly laid off its entire metaverse division, and Hyundai Department Store is discontinuing its digital wallet service, H.NFT, by the end of March. Competing game maker Com2uS had previously restructured its metaverse division due to operating losses.

Industry Analyst's Perspective

Park Hye-jin, a specialist in metaverse technology at the Seoul School of Integrated Sciences & Technologies, suggests that the decisions to shut down such ventures may be influenced by a lack of significant short-term earnings. She notes that large companies may reevaluate businesses that have not produced substantial returns and likens these decisions to instances where companies enter new ventures based on FOMO (Fear of Missing Out).

The closure of KT's NFT platform reflects a broader trend in South Korea, where companies are reconsidering their involvement in the web3 space. The shift may be attributed to the need for short-term earnings and a reassessment of ventures that have not proven financially successful.