Cryptocurrency is experiencing a surge in South Korea, but an expert contends this growth is fueled more by economic desperation among the youth than widespread optimism. With over 16 million users—exceeding 30% of the population—driven partly by reactions to U.S. political events, the underlying motive remains rooted in financial distress.
Yune at the Asia Insights panel during the German Blockchain & AI Week. Source: Cointelegraph
Eli Ilha Yune, Chief Product Officer at quantum machine learning startup Anzaetek, presented this view at the German Blockchain Week. Contrary to Western enthusiasm for Web3, Yune stated the primary motivation is “quick money,” reflecting the younger generation’s job insecurity in a slowing economy.
Government Initiatives
Yune’s remarks precede South Korea’s new administration, with President Lee Jae-myung planning accelerated integration of digital assets into the financial system. This includes backing for domestic stablecoins; notably, South Korea’s central bank head has expressed openness to a Korean won-based stablecoin.
Related: South Korea to investigate fees of local crypto exchanges
The Youth’s Economic Reality
South Korea’s youth face significant challenges. Youth unemployment (6.6%) is more than double the overall rate (2.7%), and real estate is increasingly inaccessible: Seoul’s median apartment price surpasses 1 billion won ($689,000), with a price-to-income ratio nearing 15.
“They cannot buy houses anymore, or even the rent is too high for them. So their only option is to do crypto.”
Eli Ilha Yune
Despite this, Yune noted exceptions exist, but many participants lack fundamental crypto knowledge.
South Korea’s GDP per capita peaked in 2021. Source: World Bank
Related: Kaia pledges won-pegged stablecoin as South Korean payment stocks rally
Magazine: Korea to lift corporate crypto ban, beware crypto mining HDDs: Asia Express
