Declining Hype, Rising Integration

Adopters: 26%–50%

Invested Assets: 14% of Portfolio

Widespread Age Appeal

More than one-quarter of working-age South Koreans, aged 20 to 50, now own digital assets, according to a new report from the Hana Institute of Finance released Sunday. Ownership rates trail off significantly outside this generation.

Data shows strong interest across age groups with overlap. Highest ownership saw among 40-year-olds (31%), closely followed by 30-year-olds (28%) and 50-year-olds (25%).

Driving Factors

Motivations for investing vary by age but include concern over inflation or traditional returns, preparation for retirement, desire for diversified savings, and appreciation of the asset’s growth potential according to the report.

Interest in further investment is also high, with 70% of surveyed investors saying they would invest more in the future. Key factors cited for boosting confidence were 42% wanting traditional financial firms involved and 35% seeking stronger legal protections.

Investors predominantly held Bitcoin (34%) or Ether (ETH) (21%). Younger investors appear more likely to focus on less-established altcoins or stablecoins as experience grows.

Market Sentiment

Despite widespread interest, concerns about volatility (56%) and safety risks remain. The study’s researcher said: “Virtual assets play a major role within investors’ portfolios; they expect legal institutionalization, particularly expansion of the role of the existing financial sector.”

Not Just Boomers: Young People Also Seeking High Returns

A major driver behind the expanding user base appears to be mounting economic pressures. Youth unemployment in South Korea remains high, at 6.6%. The job market is stagnant, making traditional investments like stocks seem less compelling and real estate inaccessible for many young people.

“South Korea’s once high-growth economy has stalled.”

Eli Ilha Yune, a tech observer from Anzaetek, argues that the recent surge is driven by “economic desperation.” Speaking recently, Yune contended that many young Koreans are turning to crypto seeking quick profits rather than promoting Web3 ideals.

“The crypto adoption boom is happening because young people are hurting significantly, trying to find a way to accumulate capital quickly,” Yune explained. He noted the abysmal youth job numbers and contrasting with the pay and stock return expectations from older generations.

While young South Koreans are driving parts of the market, actual investment levels are overwhelmingly higher among employed (25.1%) and salaried (26.8%) workers, indicating broader middle-class involvement.

Growing Investment Maturity

Investment habits appear to be maturing. The proportion using a regular crypto purchase plan rose significantly from 10% to 34%. Long-term view (“holding”) traders increased too, while short-term trading participation dropped slightly.

Information sources are also transitioning, reflecting a shift away from word-of-mouth towards official exchanges and analytical platforms.

Regulatory Hurdles

The carried-over concept from traditional finance, called “banking segregation rules,” prevents using the same username or number of linked accounts between the cryptocurrency account and a customer’s bank account. This complicates investing and large transactions.

Interview has found that the majority of users in Korea – about seven in ten – wish to use their primary bank to manage cryptocurrency if this rule changes.