[Startup Report] "Creating a Global K-Art Boom with NFTs" Hong Jisook, CEO of ARTTOKEN, who created an NFT artwork trading site that Samsung looked into

[Hankook Ilbo] [Startup Report] "Creating a Global K-Art Boom with NFTs" Hong Jisook, CEO of ARTTOKEN, who created an NFT artwork trading site that Samsung looked into

To be installed by default on Samsung Smart TVs after March next year

"I look forward to a world where anyone can create and trade NFT art."

Non-Fungible Tokens (NFTs) are not physical items that can be touched, but because they cannot be replicated, they are recognized as unique digital files with asset value. In particular, various artists' NFT paintings are recognized for their artistic value and traded at high prices, and some companies are creating various products as NFTs to generate revenue.

ARTTOKEN, founded in April last year by CEO Hong Jisook (57), is a representative emerging company (startup) that entered the NFT field. He created an online trading service for buying and selling NFT artworks worldwide. In particular, he plans to create and sell works by domestic artists, who are relatively less known compared to foreign artists, globally. The goal is to ignite a K-Art boom in the NFT sector, comparable to other Hallyu content such as dramas, movies, and music. We met with CEO Hong at the ARTTOKEN office in Samseong-dong, Seoul, to hear about the dream of K-Art through NFTs.

The Future Changed by the Stained Glass of a Parisian Church

CEO Hong was very interested in music and painting during middle and high school. "I was in a chorus group at Seoul Changmun Girls' Middle School, and at Seoul Sidaebu High School, I conducted the school song during assemblies. For painting, I started as a hobby at the suggestion of an older friend who was in the fine arts department, who was also in the chorus group."

However, she chose an unexpected field for her university major. "After majoring in microbiology at Seoul National University, I obtained Master's and Ph.D. degrees in Management Information Systems and Human Resource Management at Ewha Womans University. I then acquired a Human Resources (HR) consultant qualification at the famous IT company SAP, and went to study brand marketing as a post-doctoral researcher at the University of Southern California (USC) in the US."

Even while building expertise in the IT field, she never let go of her brush. "I painted occasionally and held group exhibitions in Paris. My paintings were often sold at exhibitions in Hong Kong. I believe painting is a means of expressing the heart. So, painting stabilizes my mind."

At one point, she worked on art projects with the late Buddhist painter Bang Hye-ja, who passed away last September. "Bang's paintings were installed as stained glass in the Notre Dame Cathedral in Paris, which is a UNESCO-designated French World Heritage site, last year. It was a shame that people didn't know about such wonderful works. Park Rae-hyeon, the wife of painter Kim Ki-chang, was also an excellent artist but was not well known. I mentioned this regret at a gathering of acquaintances, and then I received a business proposal."

Thus, CEO Hong began preparing a business related to art somewhat unexpectedly starting in late 2020. Just as the NFT craze was sweeping through, with 'Bored Ape Yacht Club' (BAYC) selling for 150 million won, she decided to focus on NFTs, believing that NFTs could allow more people to easily trade and own art. "I saw that NFTs, which use blockchain technology to protect copyrights and recognize asset value, were the trend. I prepared related businesses and started the project by receiving investment from LNS Investment, Daol Investment (formerly KTB Network), and Korea Investment Partners."

NFT Artwork Trading Service '2R2' Launched

The business that started this way is the NFT artwork trading service '2R2' (2R2.io). 2R2 is an open market where anyone can come and buy and sell works. ARTTOKEN takes a 2% commission fee when a painting is traded. "On the 23rd of last month, we started 2R2 as a priority web service. We hired blockchain professional developers to develop the trading platform ourselves. The related app will be released in the second half of next year."

Using 2R2 is simple. Artists can sign up on the site and upload NFT works. Users can purchase the uploaded works using the cryptocurrency Ethereum. "We are reviewing the possibility of adding other cryptocurrencies like Polygon and Solana as trade targets in the first half of next year. We must continuously increase the available cryptocurrencies."

Currently, there are about 200 NFT paintings secured for trading on 2R2. "In line with the name 2R2, we plan to hold a major event to announce it to the world on February 2 next year. Our goal is to increase the number of tradable works to 500 by then."

They also create NFT works directly. "We have staff who majored in art, including those who graduated from the New York Visual Arts School. We plan to create original NFT works in collaboration with artists. We also need to create limited edition special works commissioned by companies. We are continuously hiring designers for this purpose."

App to be installed on Samsung TV and released next year

Samsung Electronics was the first to recognize the potential of 2R2. Samsung Electronics, along with ARTTOKEN, will launch smart TVs capable of buying and selling NFT paintings globally in the first half of next year, featuring apps from three companies: Nifty Gateway in the US, and LaCollection in France (Hankook Ilbo reported on December 22). Users of Samsung Electronics' latest smart TVs do not need to buy the new product TV coming out in the first half of next year; they can download and install the 2R2 app.

This way, the TV can be used as a gallery for NFT art trading or as a frame to display paintings. "The Samsung Electronics smart TV, sold in 190 countries, will have an NFT art trading app. When you press this app, it links to the 2R2 service. Now, the era of easily buying and selling art at home has begun."

Prior to this, Samsung Electronics will demonstrate NFT art trading via the 2R2 app at CES, the world's largest IT expo, held in Las Vegas, USA, on January 5 next year. "We plan to demonstrate buying and selling art using the app on the TV at CES. We will showcase Oriental painting NFTs, such as Ryu Jae-chun's 'Waterfall,' which are hard to see overseas. Unlike static physical paintings, NFT paintings give a dynamic feeling as the cascading waterfall flows downward, surprising foreigners."

Introducing our art world through '멍화' (Menghwa) NFTs

CEO Hong's goal is for many people to enjoy art using 2R2. In particular, he plans to promote our art globally through NFTs to create a K-Art wave. "Overseas, they thought Oriental painting using Korean paper was unsuitable for Western architecture and thus did not pay attention to our art. But when we create Oriental paintings as NFTs and display them on TVs or digital frames, the story changes. They fit well in any space."

Therefore, they are also creating and selling digital frames containing NFT paintings along with the smart TV app. "We are collaborating with Blue Canvas to create digital frames with NFT paintings. We are reviewing a price of 1.2 million won per frame."

He plans to convert as many domestic artists' paintings into NFTs as possible. "I want to turn the works of top domestic artists like Kim Whanki and Lee Seok-ju into NFTs. We plan to produce hundreds of NFTs per work and sell them for 300,000 to 500,000 won each. We are contacting many artists. We have signed NFT conversion contracts with over 90 artists."

The fact that people in their 20s and 30s like NFT paintings is also positive. "Younger generations enjoy the movement of characters and objects in NFT paintings, so they keep watching them. This is why it is called 'Menghwa,' meaning to stare blankly at NFT paintings."

CEO Hong also buys many NFT paintings. "I collect them because I like the work, not because I want to make money. I own 20 NFT paintings, including works by Sung Tae-jin."

To do that, he must promote NFT paintings widely. To this end, he is introducing a reward system. "We will create many mechanisms that allow artists and users to accumulate points on 2R2. Once points are accumulated, they will be used in various ways, such as buying NFT works."

Concerns over the unstable cryptocurrency market

The problem is the unstable cryptocurrency market. People view NFTs as an extension of cryptocurrency. Many NFTs use cryptocurrency as a medium of exchange. Therefore, there is concern that if the value of cryptocurrency drops, the value of NFT paintings will also drop. "There are concerns that NFTs will also be affected after the Luna incident and the bankruptcy of FTX, one of the world's top three crypto exchanges. Since NFTs have been widely adopted as a convenient means of transacting across borders, they will naturally be impacted. However, the unique digital asset value held by NFT paintings does not disappear." Furthermore, artists worry that the works will be undervalued since the same work is produced in multiple NFTs. CEO Hong believes that this must be overcome by creating various NFT utilization cases. "If NFT paintings are not utilized in various ways, there is a limit to increasing their value. Therefore, we are preparing a metaverse exhibition next year to increase the value of NFT paintings." Strangely, CEO Hong's dream is directed towards space. "I want to load our artists' NFT paintings onto a spacecraft. Imagine the scene of astronauts viewing Oriental paintings as NFTs in space. Surprisingly, Oriental paintings with a dreamy feel match well with outer space. We want to create many of our artists' paintings as NFTs so that they are widely sought after overseas to make that happen."

Choi Yeon-jin IT Specialist Reporter (wolfpack@hankookilbo.com)

Source: Hankook Ilbo ( https://www.hankookilbo.com ) https://www.hankookilbo.com/News/Read/A2022122714400003671