Coin WorldSunday, Jun 29, 2025 11:33 am ET

2min read

Cryptocurrency ownership among South Korean adults has surged to 27 percent, with digital assets comprising 14 percent of their total financial portfolios. This significant increase is highlighted in a study titled "2050 Generation's Virtual Asset Investment Trends" released by the Hana Institute of Finance. The study reveals that the participation in cryptocurrency investments spans across various age groups, with those in their 40s leading at 31 percent ownership, followed by people in their 30s at 28 percent and those in their 50s at 25 percent. This trend indicates a growing maturity in investment patterns, as regular crypto purchases increased from 10 percent to 34 percent, while mid-term trading rose from 26 percent to 47 percent. Short-term trading, however, declined slightly during this period.

Bitcoin remains the primary choice for investors, with six in ten including BTC in their holdings. As experience grows, many diversify into altcoins or stablecoins, while non-fungible tokens and security tokens remain niche with nine in ten investors sticking exclusively to coins. Information sources have also evolved, with reliance on word-of-mouth declining while use of official exchanges and analytical platforms has increased. Looking ahead, 70 percent of respondents expressed interest in expanding their crypto investments. Nearly half said they would invest more if traditional financial institutions played a larger role in crypto markets, while 35 percent cited stronger legal protections as essential for boosting confidence.

The surge in Korean crypto adoption reflects broader economic pressures facing the population. The country's cryptocurrency market nearly doubled to 108 trillion won in the second half of 2024, with 20 percent of the population now trading digital assets. The number of verified users eligible to trade digital assets reached 9.7 million, representing a 25 percent increase from mid-year. Economic factors drive this trend, with youth unemployment standing at 6.6 percent, more than double the national average, while stalled economic growth leaves many unable to afford real estate or see meaningful returns from traditional investments. For many Korean investors, crypto represents the only viable investment option for potential wealth building. As one industry expert noted, many young Koreans turn to crypto out of financial desperation rather than optimism about blockchain technology.

The demographic breakdown shows investors in their 30s represent the largest group at 29 percent, followed by those in their 40s at 27 percent. Most investors hold relatively small positions, with 66 percent of users holding less than 500,000 won in crypto assets. Investment motivations have evolved beyond speculation. The Hana Institute study found that 78 percent of respondents in their 50s use crypto to accumulate funds, while 53 percent prepare for retirement through digital asset investments. Growth potential, diversification, and structured savings plans now rank as primary motivations, replacing earlier speculative behavior.

South Korea's crypto market developments reflect broader Asian trends in digital asset adoption. Central and Southern Asia and Oceania lead global crypto adoption, with seven of the top 20 countries located in the region. The region received more than $750 billion in crypto asset inflows between July 2023 and June 2024, representing 16.6 percent of global value received. The Korean market's expansion comes amid regulatory evolution. The government plans to draft comprehensive legislation by the second half of 2025, covering areas such as business entry regulations and disclosure requirements. Market infrastructure continues expanding rapidly, with South Korea's cryptocurrency exchange platform market projected to reach $13.84 billion by 2030, growing at a 30.6 percent annual rate from 2024. Major exchanges like Upbit, which holds 80 percent market share, and Bithumb dominate trading volumes and contribute to global crypto activity.

However, challenges persist. Current regulations restrict linking multiple bank accounts with crypto exchanges, which 70 percent of investors identified as a major pain point. Market volatility concerns affect 56 percent of current holders, while exchange and fraud risks worry potential new investors. Traditional financial institutions remain cautious about expanding crypto services without clearer regulatory frameworks. Regional competition intensifies as neighboring markets advance. Asia Pacific crypto adoption reached 22 percent in 2024, nearly three times the global average, with countries like Thailand achieving 43 percent adoption rates. Indonesia leads the region with approximately $157.1 billion in cryptocurrency value received.