S. Korea’s ad agencies turn to NFT ventures as new growth engine

South Korea’s major advertising agencies, Cheil Worldwide Inc. and Daehong Communications Inc. are boosting non-fungible token (NFT) ventures to develop new growth engines.

Cheil Worldwide, a subsidiary of South Korea's leading cryptocurrency exchange Dunamu, has signed a memorandum of understanding with US-based NFT marketplace CYPHRLY, to promote its brand NFT business.

CYPHRLY is a subsidiary of South Korea's leading cryptocurrency exchange Dunamu,

According to the terms of the agreement, Cheil Worldwide will be in charge of planning and designing brand NFTs for advertisers, while CYPHRLY will be developing and operating the NFTs through its platform.

On the basis of such products, the two parties will also showcase new types of NFT products and promote a variety of marketing and intellectual property businesses.

Daehong Communications Inc., an affiliate of Lotte's advertisement, also announced the release of an NFT-based mobile gift certificate.

Daehong intends to implement a wide range of NFT projects, including ticketing, membership programs, subscription coupons, and luxury good authentication.

Daehong invested approximately 5 billion won (US$3.74 million) to acquire a 5.7 percent stake in the domestic blockchain company Blocko.