South Korean interest in digital assets is on the rise, with a significant number of retail investors planning to increase their crypto exposure over the coming year.
A recent survey conducted by the Hana Financial Research Institute polled 1,000 individuals aged 20 to 59, revealing that while 27% already hold digital assets, 70% of respondents, and 86% of current holders, intend to expand their crypto investments.
The findings come as the country’s political leadership signals a regulatory shift that could spur further adoption, particularly through the promotion of won-based stablecoins.
The momentum is not limited to younger investors. The study found that the age group with the largest share of crypto holders was individuals in their 40s, accounting for 31% of all current holders.
While younger investors lean toward speculative trading strategies, respondents in their 50s cited retirement planning as a major reason for entering the digital asset space. Gender disparities remain notable, with Korean men being about twice as likely as women to own crypto assets.
Despite growing adoption, concerns around market volatility persist, although only a third of respondents listed security risks as a top concern, even though half store assets on exchange hot wallets.
Policy Support and Retail Enthusiasm Align
Interest in cryptocurrency is growing alongside broader market enthusiasm for firms associated with stablecoin development. The trend gained traction following the election of President Lee Jae-myung, who assumed office in early June.
Lee has pledged to legalize the issuance of won-based stablecoins, with proponents arguing that this could reduce trade costs, diversify foreign exchange exposure, and increase global investor participation in Korea’s economy.
Lawmaker Min Byeong-deok, who served as head of digital assets during Lee’s campaign, echoed these benefits, noting that legal clarity could be a key driver of future economic gains.
In line with this agenda, a new parliamentary proposal would allow domestic firms with a minimum equity capital of 500 million Korean won (approximately $367,000) to issue won-denominated stablecoins.
The draft law bears similarities to the GENIUS Act currently under review in the United States, though the Korean version includes explicit capital thresholds.
In contrast, the GENIUS Act does not mandate a minimum equity requirement, although it imposes enhanced oversight on issuers with market capitalizations exceeding $10 billion.
Foreign Investments Reflect Rising Confidence
Korean retail interest in stablecoins is also reflected in foreign stock holdings. Following its public listing, Circle, the issuer of USDC, has become the top overseas equity investment among South Korean retail investors, with $443 million allocated, according to Bloomberg.
Notably, as South Korea’s regulatory environment continues to evolve, retail and institutional activity may play an increasingly central role in shaping the country’s crypto economy.
Featured image created with DALL-E, Chart from TradingView
