More than a quarter of South Koreans in their 20s to 50s now own digital assets, with their crypto investments making up 14% of their total financial portfolios, according to a new report from the Hana Institute of Finance released Sunday.
The study, titled 2050 Generation’s Virtual Asset Investment Trends, shows that interest in crypto cuts across age groups. Those in their 40s led participation at 31%, followed by people in their 30s at 28% and 50s at 25%.
78% of respondents in their 50s said they use crypto as a way to amass funds, while 53% said they were preparing for retirement through crypto investments. More respondents now cite growth potential, diversification, and structured savings plans as key motivations for investing.
Meanwhile, 70% of respondents expressed interest in expanding crypto investments in the future. 42% said they would invest more if traditional financial institutions took a larger role in crypto markets, while 35% cited stronger legal protections as a key factor in boosting confidence.
Related: South Korean banks plan won-pegged stablecoin launch by 2026
Korean investors make regular crypto purchases
Investment patterns are also maturing. The proportion of investors making regular purchases rose from 10% to 34%, and mid-term trading increased from 26% to 47%, while short-term trading fell slightly.
The way investors get information is also changing. Per the report, reliance on word-of-mouth has declined, while the use of official exchanges and analytical platforms has risen.
Bitcoin (BTC) remains the primary choice, with six in ten investors including BTC in their holdings. As experience grows, however, many diversify into altcoins or stablecoins. Non-fungible tokens (NFTs) and security tokens (STOs) remain niche, with nine in ten investors sticking exclusively to coins.
“Virtual assets play a major role within investors’ portfolios,” said Yoon Sun-young, a researcher at Hana Financial Research Institute. “Investors expect legal institutionalization and expansion of the role of the existing financial sector.”
A major pain point highlighted was the restriction preventing linking multiple bank accounts with crypto exchanges. Seven in ten investors said they would favor their primary bank if this rule were relaxed.
Concerns about market volatility remain widespread (56%), while worries over exchange or fraud risks were more pronounced among those hesitant to invest further.
Related: South Korea’s central bank wants gradual stablecoin rollout
Korea’s crypto boom fueled by desperation
Last week, Eli Ilha Yune, chief product officer at Anzaetek, said the surge in crypto South Korea’s crypto adoption isn’t driven by optimism about blockchain technology.
Speaking at German Blockchain Week, Yune argued that many young Koreans are turning to crypto out of financial desperation, seeking quick profits rather than supporting Web3 ideals.
Youth unemployment in South Korea is a key factor, standing at 6.6%, more than double the national average. Yune explained that South Korea’s once high-growth economy has stalled, leaving many young people jobless and unable to afford real estate or see meaningful returns from traditional investments like stocks.
Amid this economic pressure, crypto has become the only viable investment option for Korea’s younger generation, according to Yune. He noted that while some young investors understand crypto’s technology, many are unaware of its infrastructure.
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