According to Cointelegraph, the cryptocurrency market in South Korea is experiencing significant growth, with over 16 million users engaging in crypto exchanges as of late March. This surge follows U.S. President Donald Trump's election victory last November, representing more than 30% of the country's population. However, insights from Eli Ilha Yune, chief product officer at Anzaetek, during the German Blockchain Week, suggest that this increase is not fueled by enthusiasm for blockchain technology. Instead, Yune attributes the rise to the financial desperation of the younger generation seeking quick financial gains.
Yune's observations coincide with the initiatives of newly elected President Lee Jae-myung, who is accelerating efforts to integrate digital assets into South Korea's financial system. These plans include supporting the issuance of domestic stablecoins, with the central bank's head reportedly open to the idea of a Korean won-based stablecoin. Despite the popularity of cryptocurrencies among South Korea's youth, Yune emphasizes that this interest is not driven by a belief in the transformative potential of crypto. The 2025 Korea Wealth Report highlights that the 'young rich' possess three times more crypto than their older counterparts, with 34% of high-net-worth individuals already owning digital assets.
The economic landscape for South Korea's youth is challenging, with youth unemployment for those aged 15 to 29 at 6.6% in May, significantly higher than the overall unemployment rate of 2.7%. Yune notes that while stocks might be a preferred investment option, they do not offer substantial returns. Additionally, real estate remains inaccessible due to high costs, both for personal use and investment purposes. The median price of an apartment in Seoul has doubled over five years, reaching 1 billion won ($689,000), with a price-to-income ratio of 15.2. Consequently, many young individuals turn to cryptocurrency as their only viable financial option, despite not being deeply interested in or knowledgeable about the technology behind it. Yune acknowledges exceptions but stresses that many are unaware of the infrastructure involved in crypto trading.