South Korea's Youth Turn to Crypto Amid 6.6% Unemployment

Cryptocurrency has seen a significant surge in popularity in South Korea, with over 16 million users on crypto exchanges, representing more than 30% of the country’s population. However, this boom is not driven by enthusiasm for blockchain technology but by the economic desperation of the younger generation. According to Eli Ilha Yune, chief product officer at quantum machine learning startup Anzaetek, the motive behind this trend is not a belief in Web3 or the potential of cryptocurrency, but rather a search for "quick money" due to financial hardship.

Yune's observations come at a time when South Korea's newly elected President Lee Jae-myung is pushing to integrate digital assets into the country's financial system. This includes support for issuing domestic stablecoins, with the head of South Korea’s central bank reportedly open to the idea of a Korean won-based stablecoin. Despite these developments, the underlying issue remains the dire economic situation faced by South Korea's youth.

The 2025 Korea Wealth Report indicates that the "young rich" hold three times more crypto than the over-45 wealthy, and 34% of local high-net-worth individuals already own crypto. However, this is not due to a widespread belief in crypto’s potential. South Korea, once known for its high-growth economy, has struggled to maintain its pace, leaving many young people jobless. Youth unemployment for individuals aged 15 to 29 stood at 6.6% in May, more than double the overall 2.7% unemployment rate.

Real estate, traditionally a safe investment, is out of reach for many young people. The median Seoul apartment price has doubled in five years, topping 1 billion won ($689,000), and the price-to-income ratio for the city is reportedly 15.2. This makes housing both for personal needs and as an investment unattainable for many. Yune noted that while stocks would be the first option for South Korean youth, they don’t see a lot of returns, leaving cryptocurrency as their only viable option.

Yune acknowledged that there are exceptions, but many young people are not even aware of the infrastructure or the technology involved in crypto. This trend highlights the severe economic pressures that young people are experiencing, leading them to seek alternative financial avenues. The desperation among South Korean youth to find financial stability is evident in their willingness to take risks with cryptocurrency, a volatile and unpredictable market. This phenomenon reflects the broader economic challenges faced by young people in South Korea, including high unemployment rates and limited job opportunities. The turn to cryptocurrency is a clear indication of the economic struggles that many young people are facing, as they look for ways to secure their financial future in an uncertain economic landscape.