Koreans Show 71% Interest in Boosting Crypto Holdings

According to a recent survey conducted by the Hana Financial Research Institute, 71% of Koreans are interested in purchasing more cryptocurrency, indicating a strong appetite for digital assets among the population. The survey, which analyzed current investor tendencies and future intentions, found that 27% of participants already own crypto, with an average investment of around $10 million won, accounting for 14% of their portfolios. The median age of the respondents is between 30 and 40, with men being more active in the investing space, although there has been a steady increase in female participation since the start of 2024.

The main reasons for investing in cryptocurrencies tend to be psychological, with a notable shift from the fear of missing out (FOMO) from 57% to 34% compared to previous surveys. Other factors driving investment include growth potential and portfolio diversification. The vast majority of investors are focused on Bitcoin, with 89% of respondents holding it, but there is a growing interest in other cryptocurrencies, particularly stablecoins, as trading experience rises.

One of the common challenges faced by respondents is the lack of integration between cryptocurrency exchanges and traditional banking systems. If regulations become more favorable, 7 out of 10 investors would prefer to use their residential bank rather than a new bank with preferential benefits. This indicates a strong preference for ease of integration with traditional financial systems. Concerns about volatility remain high, with 56% of respondents expressing worries, as do fears of bankrupt exchanges (61%) and the risk of fraud (61%).

Despite these concerns, 43% of survey participants indicated a high intent to continue investing in crypto assets in the future, with an additional 28% showing moderate interest. This suggests that a significant portion of the population is willing to navigate the risks associated with cryptocurrency investments. The survey also found that crypto investments would be viewed more positively if more traditional finance companies participated (42%) and more legal frameworks were established (35%).

The growing interest in cryptocurrencies is not limited to the general public; about 20% of South Korean officials also hold crypto, according to another recent survey. This adoption by officials reflects a broader trend of increasing acceptance and integration of digital assets into the financial landscape. Additionally, the Deputy Chief of the Bank of Korea noted that it would be desirable to start a gradual introduction to stablecoins, further indicating a shift towards embracing digital currencies.

The current crypto landscape in Korea is flourishing, with the country becoming one of the most active markets for digital assets. The benchmark Kospi Composite Index has seen significant gains, reflecting the overall positive sentiment towards the market. This trend is likely influenced by the recent election of a crypto-friendly President, who has supported the adoption of digital currencies. The country has seen substantial stablecoin trades, pushing the Bank of Korea to move forward with plans for a won-backed stablecoin.

In summary, the survey findings highlight a strong interest in cryptocurrencies among Koreans, with 71% of respondents expressing a desire to increase their holdings. This trend reflects the growing acceptance of digital assets and the potential for significant financial gains. As the regulatory environment continues to evolve and more people become educated about cryptocurrencies, the market for digital assets is poised for further growth and innovation. The survey underscores the importance of education, awareness, and regulatory support in driving the adoption of cryptocurrencies, paving the way for a more integrated and inclusive financial landscape.