A recent study from the Hana Institute of Finance reveals that over one-fourth of South Koreans between the ages of 20 and 50 are now owners of various digital assets. Interestingly, their cryptocurrency investments constitute 14% of their overall financial portfolios.
The report, named “2050 Generation’s Virtual Asset Investment Trends”, demonstrates that the appeal of crypto investment transcends generational gaps. The highest participation rate is seen amongst individuals in their 40s at 31%, followed by those in their 30s at 28%, and finally, those in their 50s at 25%.
Remarkably, 78% of the participants in their 50s revealed they were utilizing crypto as a wealth accumulation method, with 53% preparing for their retirement using digital assets. The potential for growth, diversification, and structured savings plans are the main drivers encouraging investment in the crypto market.
Furthermore, 70% of the respondents showed interest in increasing their crypto investments in the future. 42% indicated they would invest more if traditional financial institutions were more involved in the crypto market, whilst 35% identified enhanced legal protections as a key factor in boosting their confidence.
The report also highlights a maturity in investment patterns, with a rise in regular purchases from 10% to 34% and mid-term trading increasing from 26% to 47%. Meanwhile, short-term trading has seen a slight decrease.
Investors are changing the way they gather information, with a decreased reliance on word-of-mouth and increased use of official exchanges and analytical platforms. Bitcoin (BTC) remains the top pick, with six out of ten investors holding BTC in their portfolios. However, as investor experience grows, many are diversifying into altcoins or stablecoins. NFTs and STOs are still niche, with nine out of ten investors sticking to coins.
Yoon Sun-young, a researcher at Hana Financial Research Institute, said, “Virtual assets play a significant role within investors’ portfolios. Investors anticipate legal institutionalization and the expansion of the role of the existing financial sector.” The restriction on linking multiple bank accounts with crypto exchanges is a major concern, with seven in ten investors expressing they would favor their primary bank if this rule were relaxed.
Despite the boom, concerns about market volatility (56%) and exchange or fraud risks remain prevalent. Last week, Eli Ilha Yune, chief product officer at Anzaetek, suggested that South Korea’s increase in crypto adoption is driven more by financial desperation and quick profit generation rather than optimism about blockchain technology.
