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 Generations 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%.Of respondents in their 50s, 78% 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, and 42% said they would invest more if traditional financial institutions took a larger role in crypto markets.
Only 35% cited stronger legal protections as a key factor in boosting confidence.Demographic breakdown of Korean crypto investors by age, gender, and occupation, showing dominance of men in their 30s-40s and white-collar workers.
Source: Hana Institute of FinanceRelated: South Korean banks plan won-pegged stablecoin launch by 2026Korean investors make regular crypto purchasesInvestment 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 10 investors including BTC in their holdings.
As experience grows, however, many diversify into altcoins or stablecoins.
Non-fungible tokens (NFTs) and security tokens remain niche, with nine in 10 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 10 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 Koreas central bank wants gradual stablecoin rolloutKoreas crypto boom fueled by desperationLast week, Eli Ilha Yune, chief product officer at Anzaetek, said South Koreas surge in crypto adoption isnt 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 Koreas 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 Koreas younger generation, according to Yune.
He noted that while some young investors understand cryptos technology, many are unaware of its infrastructure.Magazine: XRP jumps on Ripple-SEC update, Pomp scoops up $386M BTC: Hodlers Digest, June 22 28