Among investors aged 20-50 in South Korea, 27% hold cryptocurrencies.
South Korean financial media (Daily Economic News) reports that Hanwha Financial Research Institute's latest report on ‘Investment Trends in Virtual Assets Among People Aged 20-50’ shows that among 1,000 financial investors aged 20 to over 50, 27% hold cryptocurrencies, accounting for 14% of their total financial assets, and as many as 70% of respondents expressed willingness to invest in cryptocurrencies in the future.
From Hanwha's report, we can observe the current state of the cryptocurrency market in South Korea, where 10 million people have invested in cryptocurrencies, which are no longer just speculative tools but have become an important asset for the Korean public for significant capital allocation or retirement preparation.
According to age group analysis, investors in their 40s represent the highest proportion at 31%, followed by those in their 30s (28%) and 50s (25%). Among investors in their 50s, 78% indicated that they hold cryptocurrencies to accumulate wealth, while 53% are preparing for retirement.
Source: Daily Economic News, South Korea. Among investors aged 20-50, 27% hold cryptocurrencies.
Korean cryptocurrency investment strategies are maturing, with regular investments becoming mainstream.
According to a report by Cointelegraph, the investment model of South Korean investors is maturing.
For example, the proportion of regular investments has significantly increased from 10% to 34%, medium-term trading has risen from 26% to 47%, while the share of short-term investments has slightly decreased from 48% to 45%, indicating that Korean investors are shifting from short-term speculation to more planned long-term investment strategies.
A report by Hanwha shows that among 1,000 respondents, 90% of investors simply hold cryptocurrencies, while the proportion of holdings in non-fungible tokens (NFTs) and security tokens (STOs) is low.
Investors on average hold two types of cryptocurrencies, with 60% including Bitcoin ($BTC). As investment experience grows, investors tend to diversify their funds into other altcoins or stablecoins.
Further Reading:
After more than a decade of cryptocurrency development, is Bitcoin the ultimate destination? Why are even the founders of altcoins switching to BTC?
Investors have a strong demand for institutionalization, and concerns about market volatility remain high.
Yoon Sun-young, a researcher at Hanwha Financial Research Institute, stated in the report:
“Virtual assets play an important role in investors' portfolios, and investors expect legal institutionalization and an expansion of the existing financial sector's role.”
She stated that the South Korean government needs to prepare proactively for the expansion of the investment ecosystem, including diversifying virtual asset financial products, upgrading integrated investment management, and collaborating with the virtual asset industry.
Although the surveyed investors still have high concerns about market volatility (56%), 42% of respondents indicated that they would actively consider investing if traditional financial companies expanded their roles; 35% believe that strengthening legal regulation will enhance investment confidence.
Those with lower investment willingness have a higher awareness of exchange risks (61%) or fraud risks (61%), leading to greater psychological resistance.
The report calls for the relaxation of restrictions on exchanges and banks.
Hanwha's report also pointed out that the biggest problem facing South Korean cryptocurrency investors is the inability to link existing bank accounts when opening an exchange.
If the restriction of a designated bank for an exchange is relaxed, 70% of investors indicated they would choose their primary bank rather than a new bank offering incentives.
Is the cryptocurrency trading craze in South Korea a reflection of youth despair over the economy?
Behind the cryptocurrency trading craze in South Korea is a unique background. Eli Ilha Yune, a product manager at quantum computing healthcare learning service Anzaetek, recently stated that the youth unemployment rate in South Korea has reached 6.6%, more than double the national average.
Yune pointed out that South Korea's once high-growth economy is now stagnant, leading to many young people being unemployed and unable to afford real estate, nor can they gain substantial returns from traditional investments like stocks.
Under economic pressure, cryptocurrencies have become the only viable investment option for the younger generation in South Korea. Many turn to cryptocurrency investment not out of optimism towards blockchain technology, but due to despair over their economic situation.
Further Reading:
(Squid Game) Come true? 40% of South Korean college students rely on cryptocurrency trading to pay off debts, are young people about to collapse?
‘Is it really a cryptocurrency trading powerhouse? 27% of young adults in Korea hold cryptocurrencies, and more than half are preparing for retirement’ This article was first published in ‘Crypto City’
