South Korean youths shift to crypto, 25% of 20s-50s now favor digital assets - Coinfea

Over 25% of South Koreans aged 20 to 50 are now holding digital assets, with crypto accounting for about 14% of their financial portfolios. According to a new report by the Hana Institute of Finance, 31% of crypto ownership is held by investors in their 40s, 28% in their 30s, and 25% by persons in their 50s, narrowing the age gap between crypto ownership to 22%.

Investors between the ages of 50 and 59, who were about 78%, said they invest in crypto as a means of wealth accumulation on their side, while 53% are using it to save towards retirement. The interest has not declined either, with 70% of all respondents wanting to invest more in crypto. Traditional financial institutions‘ role and more robust legal protection were cited as having a role in raising confidence.

Current crypto users are dominated by white-collar men in their 30s and 40s. The report, however, states that trading strategies are maturing. Frequent crypto purchases increased by 34% and medium-term activity increased by 47%. Short-term speculative trading marginally fell.

South Korean youths cling to Bitcoin amid diversification moves

Bitcoin is still the most attractive investment among South Korean youths, as six out of ten investors own the asset. However, with increased experience, most are venturing into altcoins and stablecoins. NFTs and security tokens are still unpopular, as nine out of ten investors prefer to keep only coin investments. Banking restrictions have also been a major problem, with seven in ten investors saying they would prefer their main bank for crypto transactions if allowed to link multiple accounts.

Currently, South Korea only allows one bank account per exchange, which is very strict and limits user experience and flexibility. Unemployment among South Korean youths is also high at 6.6%, more than twice the national average. The increasing cost of housing and the overall lack of wage increases are pushing young Koreans into high-risk crypto investments. This contrasts with older investors, who increasingly appreciate crypto for conducting structured savings and long-term wealth planning.

However, institutional action is picking up pace. Recently, South Korean bank KB Kookmin Bank submitted 17 trademarks related to a future stablecoin product, including designations such as KBKRW and KRWST. Both filings were filed with the Korea Intellectual Property Rights Information Services and cover software for virtual currency and blockchain-based systems. These trademarks are part of the bank’s wider plans to develop a national stablecoin consortium.

KB is also among eight big banks planning a joint venture to issue won-pegged stablecoins. The effort is coordinated with Korea Financial Telecommunications and Clearings Institute and the Open Blockchain and Decentralised Identifier Association. Such steps correspond to the political shift with President Lee Jae-Myung, whose government is likely to accelerate the institutional adoption of crypto.

Although he didn’t mention crypto in his inauguration speech, the Democratic Party Digital Asset Committee plans to push regulatory reforms and integrate crypto into the financial system. He is expected to be in charge of crypto policies in South Korea, such as the possible implementation of the Digital Asset Basic Act (DABA). This move started with Yoon, who had campaigned on it but could not witness it to completion since he was relieved early.