Over 25% of South Koreans in 20s to 50s Invest in Crypto

Seoul, South Korea — Over a quarter of South Koreans aged 20 to 50 now own cryptocurrency, according to a recent report from the Hana Institute of Finance. The report, titled 2050 Generation’s Virtual Asset Investment Trends, indicates that 27% of individuals in this age group invested in digital assets, with these investments making up 14% of their total financial portfolios.

The survey, which included responses from 1,000 financial consumers, revealed that participation in crypto investments is particularly prominent among those in their 40s at 31%, followed by individuals in their 30s at 28% and 25% of those in their 50s. Many in their 50s use crypto primarily to save for retirement, with 78% of them acknowledging the role of digital assets in raising funds.

The report also found that 70% of all respondents expressed interest in increasing their crypto investments in the future. Factors influencing their confidence include the hope for broader involvement from traditional financial institutions and stronger legal protections, with 42% and 35% citing these aspects, respectively.

Investment behaviors are changing as well, with regular purchasing among crypto investors increasing from 10% to 34%. Moreover, mid-term trading grew from 26% to 47%, although short-term trading decreased slightly.

Bitcoin remains the preferred choice for many investors, as 60% include it in their portfolios. However, as their experience grows, many are diversifying into alternative coins, though non-fungible tokens and security tokens remain less common, with 90% sticking strictly to coins.

Yoon Sun-young, a researcher at Hana Financial Research Institute, noted, “Virtual assets play a major role within investors’ portfolios.” She highlighted the necessity for legal institutionalization to enhance investor confidence and expand the role of financial institutions in the crypto sector.

Despite optimism, concerns regarding market volatility persist, with 56% of respondents expressing unease. Additionally, hesitation around investments often correlates with fears of exchange risks and potential fraud.

The report signifies a broader trend toward acceptance of digital currencies as reliable financial assets, particularly crucial for retirement planning in light of South Korea’s pension reform challenges. The rising interest in cryptocurrencies reflects the need for a more robust infrastructure to accommodate the growing investment demand.