South Korea

3.9% of South Koreans own cryptocurrency

How many cryptocurrency owners are there in South Korea?

It is estimated that 2 million people, or approximately 3.9% of South Korea’s total population, currently own cryptocurrency.

State of Cryptocurrencies in South Korea

South Korea has long been labelled the cryptocurrencies hotspot of Asia. Home to exchange giants like Upbit, BitHumb, CoinOne, Korbit, and Gopax, South Korea first experienced its boost in cryptocurrency popularity in 2017. Nearly 30% of all cryptocurrency trading worldwide is powered by the Korean market. Currently, it is legal to own, sell, and buy cryptocurrency assets in the country, as cryptocurrency assets have not been legalised as official tender by the South Korean government.

Furthermore, South Korea seems to be on the right trajectory to consolidate its dominance as the cryptocurrency hub of Asia, as seen in the recent presidential election, in which they elected Yoon Suk-yeol, a pro-digital-currency politician. Pro-digital-currency laws and policies are currently in motion, such as proposals for more favourable tax laws and the potential return of ICOs/IEOs.

South Korea Cryptocurrencies Ownership Demographics

As of 2021, it is estimated that 54% of the cryptocurrency users in South Korea are male, and 46% are female.

According to a Forkast report, 31% of South Korean investors are in their 30s, 27% are in their 40s, and a quarter of them are in their 20s

Are South Koreans open to cryptocurrencies?

The average South Korean trader increased their cryptocurrency holdings by 64.2% in 2018, investing an average of $ 6,000, a two-fold increase from the last survey.

Cryptocurrencies are popular investments among South Korea’s young generation, who see them as a path to prosperity amid persistently high unemployment. South Korea has long been an early adopter of new technology, and the culture is such that people are quick to embrace new technological innovations and opportunities. Cryptocurrencies are stateless investments that appeal to South Korean investors wary of the political climate and their proximity to the threat posed by North Korea.

“For young Koreans, cryptocurrency seems like a rare shot at prosperity,” an article on the online publication The Verge states. The same article quotes a 20-something journalist who opines that cryptocurrency investments are also a means for a largely homogenous and well-educated workforce to distinguish themselves from peers.

Cryptocurrencies' rising popularity in South Korea

• Tailwinds for South Korea’s Cryptocurrencies Industry– July 2022
  Back in early April 2022, The Korean Herald reported that SK Square, the investment arm of South Korean conglomerate SK Group, announced it would spend 2 trillion won (US$1.6 billion) over the next three years on semiconductors and blockchain. The CEO mentioned that the move is substantiated by the cryptocurrency-friendly environment within South Korea. The interest of the massive corporate entity reflects South Korea’s continued surge in the cryptocurrency space.
• Meet South Korea’s newly-elected pro-digital-currencies President– March 2022
  The newly elected president has successfully won the hearts of many young South Koreans with his pro-digital-currency stance and promises to implement more policies to fully embrace cryptocurrency as a nation.
• Coindesk: Young Koreans Turning to Cryptocurrencies – April 2021
  Young South Koreans are reportedly turning to cryptocurrencies in greater numbers to generate wealth, much to the chagrin of their employers. Many of South Korea’s young workers aged in their 20s and 30s are leaving their average-paying jobs to explore cryptocurrency day trading, according to a report by local news outlet The Chosun Ilbo on Tuesday. Their goal is to escape poverty and amass enough wealth to buy a home, a dream many young people worldwide feel is out of reach.
• Cointelegraph: South Korea reportedly set to approve cryptocurrency-focused fund – April 2021
  The Naver News service in South Korea has reported that the country’s Financial Supervisory Service, or FSS, is set to approve a cryptocurrency-related fund application by Hanwha Asset Management, a subsidiary of South Korea’s insurance giant Hanwha Life Insurance. Quoting an official from the Korean Financial Investment Association, the report states that the FSS approval could arrive as early as Sunday.