Over 30% of Wealthy Koreans Prefer Cryptocurrency as a Long-term Wealth Strategy
By Denis Omelchenko
April 21, 2025
A Shift in Investment Preferences
A recent report from Hana Bank has revealed a significant trend among South Korea’s wealthy investors: more than 30% are now looking to cryptocurrency as a viable long-term wealth strategy. This finding indicates a shift away from traditional investment avenues such as gold and real estate, as younger investors increasingly favor digital assets for their growth potential.
The Hana Bank report, backed by insights from its think tank, suggests that the adoption of digital assets could signify a fundamental change in investment behavior, particularly as conventional financial systems fail to meet the expectations of the younger demographic.
Rising Expectations and Investment Levels
The report highlighted a growing enthusiasm for cryptocurrency among affluent individuals, noting that over 70% of wealthy participants had invested more than 10 million won (approximately $7,000) in digital assets. This group’s average investment in cryptocurrencies is reportedly more than double that of other investors, indicating a robust belief in the asset class’s potential for long-term appreciation.
Diverging from Traditional Markets
Evidence of this trend is visible across South Korea’s investment landscape. Many young professionals are moving away from the domestic stock market, disillusioned with its performance. A 20-something office worker remarked, “I never invest in the Kospi,” referring to the Korea Composite Stock Price Index, while others in their 30s are shifting towards U.S. equities and crypto investments.
Data from the Korea Securities Depository reveals a notable decline in the percentage of young investors in the Korean market; only 11% of investors in their 20s participated in 2023, compared to 14.9% in 2021. In the 30s age group, participation dipped from 20.9% to 19.4% over the same period. Conversely, nearly 48% of crypto investors in South Korea were under 40 as of last year, according to the Financial Services Commission.
The Thriving Crypto Market
The cryptocurrency market is flourishing, with a staggering trading volume of approximately 2.52 quadrillion won (around $1.76 trillion) recorded on five major exchanges, including Upbit and Bithumb. A brokerage industry insider noted that cryptocurrencies, especially Bitcoin, are drawing retail investment away from traditional stock markets.
Ki Young Ju, Chief Executive of CryptoQuant, highlighted that the strong demand is primarily driven by Korean retail investors who exhibit a greater willingness to engage with high-risk assets compared to their U.S. counterparts. Notably, trading volumes on Korean exchanges have consistently exceeded those on local stock markets like the Kosdaq.
Maturing Investor Sentiments
While the Hana report refrains from endorsing any specific cryptocurrency, researcher Yoon Seon-young emphasized that the growing interest from wealthier investors reflects a maturation in the understanding of digital assets. She noted, “The wealthy tend to study thoroughly before investing and prefer to invest in areas they understand,” stressing the importance of continued education in this evolving investment landscape.
Regulatory Developments on the Horizon
Recognizing this shift, South Korean regulators are adapting to the growing role of cryptocurrencies in investment strategies. The Financial Services Commission plans to introduce comprehensive investment guidelines for crypto by the third quarter of 2025, indicating a movement toward integrating digital assets more closely with formal financial systems. Discussions around allowing universities and nonprofits to hold crypto assets and revisiting previously banned spot ETFs are also underway.
FSC Vice Chairman Kim So-young remarked on the need for South Korea to enhance its crypto market infrastructure, particularly in light of accelerating global crypto adoption.
Political Reactions and Future Implications
The increasing popularity of digital assets among younger investors has also caught the attention of politicians. Some, like presidential candidate Hong Joon-pyo, advocate for reducing regulatory burdens on cryptocurrencies, drawing parallels to deregulatory efforts seen in the U.S.
As cryptocurrency continues to gain foothold, it is becoming clear that this trend is redefining investment strategies not only in South Korea but potentially setting patterns for global investment behavior. With around 30% of the South Korean population reportedly engaging in crypto trading, the implications for regulators, financial institutions, and investors alike are profound.
As we move deeper into this new financial landscape, the interplay of potential and volatility will be crucial, demanding both cautious approaches and innovative thinking from all stakeholders involved.
Share this article:
