A kaleidoscope shows diverse patterns with rotating chambers. Korean pop culture also presents its own diversity, integrating into other cultural areas, and catching consumers’ eyes with creative ideas. The Chosun Biz introduces this changing and enjoyable mixture of cultural patterns.[Editor’s note]
With the advent of the 4th Industrial Revolution, South Korea’s entertainment industry is experiencing a seismic shift, particularly with the integration of cutting-edge technologies like blockchain.
Blockchain technology is not only enhancing transaction transparency but is also enabling closer communication between fans, companies, and artists.
Among the forefront of this adaptation is Modhaus, a Korean entertainment company actively incorporating NFT and blockchain technology. Modhaus is pioneering a ‘fan-participatory’ idol market, in which fans play a key role in shaping idol groups.
Modhaus made headlines by debuting ‘tripleS’, the world’s first fan-participatory idol group with 24 members of diverse nationalities. Since its establishment in Dec. 2021, Modhaus has received investments from major Korean companies like Naver and CJ Group.
Modhaus’s use of blockchain technology is unique. Fans can purchase digital photo cards called ‘Objekt’ or scan QR codes from album photo cards to acquire Non-Fungible Tokens (NFTs). Fans are then rewarded with ‘COMO’ tokens, which grant voting rights based on the quantity held.
Currently, over thousands of fans are active on Modhaus’s proprietary application, ‘COSMO,’ engaging in activities like voting on album names, title songs, and fandom names for tripleS. The fandom name ‘WAV’ was also chosen through this participatory approach.
The company’s choice to employ blockchain technology stems from its inherent transparency, as the data once recorded cannot be altered. Surprisingly, Modhaus’s NFT sales are higher overseas, particularly in North America. To date, approximately 1.3 million NFTs have been minted, with North America accounting for 42 percent and Asia for 39 percent, respectively.
Recently, Modhaus secured $8 million in Series A funding, bringing its total investment to approximately $11 million(15.5 billion won). This round was led by Sfermion, a U.S.-based Web 3.0 venture capital firm, with participation from SM Entertainment’s corporate venture capital, SM Culture Partners.
Baek Kwang-hyun, Co-Founder of Modhaus, believes that their rapid success is a proof to the potential of their business model in both the entertainment and platform sectors. “With this investment, we plan to introduce new IPs to the global market and evolve COSMO into a true multi-IP platform,” he stated.
Kim Jong-soo, CCO of Modhaus, envisions tripleS as a group where fans actively influence the artists and content creation process, apart from the traditional one-way communication model in the industry.
Other entertainment companies are also adopting blockchain technology, such as 143 Entertainment, home to artists like iKON and rapper Dok2. They are collaborating with blockchain developer Goodblock to develop NFTs related to their artists’ intellectual property.
Large entertainment companies like SM and Hybe are also exploring blockchain technology. SM is creating its own universe through metaverse technology, while Hybe, in partnership with Dunamu, operator of Korea’s largest virtual asset exchange Upbit, has formed a joint venture called ‘Levvels’, focusing on NFT projects involving their artists.
Insiders of the industry see the integration of blockchain in entertainment as a strategic move to develop new business opportunities, particularly given the rich intellectual property assets like famous artists. An anonymous virtual asset VC commented, “Famous artists have strong fan bases, making them ideal for merchandise business. NFTs, in particular, can stimulate fans’ desire to collect, making this combination even more appealing.”
