Crypto Ownership in South Korea Hits 25% as Long-Term Strategies Grow

The latest report on cryptocurrency ownership in South Korea, the “2050 Generation Virtual Asset Investment Trends Report” published by Hana Financial Research Institute, reveals significant shifts in the habits of digital asset holders. The report indicates that 27% of individuals between the ages of 20 and 50 invest in cryptocurrencies, and these investments constitute an average of 14% of their total financial assets. This trend is driven by a maturing market where long-term investment strategies are becoming more prevalent.

The research is based on survey results conducted with 1,000 people. The crypto ownership rate is at its highest level, with 31% among individuals in their 40s. 70% of investors state that they plan to increase their crypto investments in the future. Another noteworthy piece of data from the report is that more than half of investors in their 50s are holding crypto for retirement preparation. 78% of this age group stated that they invested in virtual assets for the purpose of creating large savings, and 53% directly for old age preparation.

While 79% of investors use crypto to “grow money,” only 24% say they invest for “fashion and entertainment,” and 22% say they invest for “daily living expenses.” This suggests that crypto is now being viewed as a serious portfolio asset. Behaviors towards crypto investments are also maturing. The proportion of regular investors increased from 10% to 34%, while the proportion of medium-term investors increased from 26% to 47%. The proportion of short-term investors decreased from 48% to 45%.

While 90% of investors stated that they only hold coins, interest in new generation digital assets such as NFTs and security tokens remained low. 60% of investors who hold an average of two different coins include Bitcoin in their portfolios. Initially focused on Bitcoin, investment strategies have expanded over time with altcoin and stablecoin diversity. The biggest complaint from investors was the inability to establish a connection between exchanges and existing bank accounts. Under the current system, exchanges can only be assigned a single bank account. 70% of participants said they would prefer their main bank if this restriction was lifted.

Market volatility (56%), stock market risk (61%) and fraud concerns (61%) still significantly influence investment decisions. However, investors see the more active role of traditional financial institutions (42%) and increased regulation (35%) as positive steps. The report also mentions that significant crypto policies in South Korea will be overseen by Lee, indicating a continued focus on regulatory oversight and market stability. The market has experienced a major reversal, with a realization that assets were being mispriced, leading to a significant shift in market dynamics. This reversal underscores the volatility and unpredictability of the cryptocurrency market, where sudden changes in sentiment can lead to dramatic price movements. The report also notes that the development of new quantum algorithms is an active area of research, aimed at unlocking applications where quantum computers can outperform classical ones. This development could have implications for the cryptocurrency market, as quantum computing has the potential to disrupt existing cryptographic systems.

Overall, the report paints a picture of a rapidly evolving cryptocurrency landscape in South Korea, with a growing number of owners, maturing investment strategies, and ongoing regulatory developments. The market's volatility and the potential impact of quantum computing add further complexity to an already dynamic sector. The report indicates that 25% of South Korean adults now own cryptocurrencies, marking a new milestone in the region's crypto adoption. This trend is driven by a hyper-trading culture and favorable regulatory changes, which have contributed to the growing acceptance of digital assets among the population. The report also highlights that 31% of crypto ownership is held by investors, suggesting a maturing market where long-term investment strategies are becoming more prevalent.