40% of university students in South Korea are investing in cryptocurrencies such as Bitcoin and foreign stocks, showing a shift towards global investing and digital assets.
According to a survey conducted by Korea Investment and Securities with more than 400 college students from June 11 to June 22, 40% of them said they are investing in cryptocurrencies such as Bitcoin. The main reason given is the expectation of high profits from this market.
Cryptocurrency is one of the investment channels that Korean youth are most interested in. Source: The New York Times
Besides, the survey also showed great interest in foreign stock markets. Specifically, 72% of student respondents said they are investing in foreign stocks, mainly companies listed on the NYSE. Of these, 89% plan to diversify their NYSE portfolio in the near term and 87% plan to enter the market within the next year.
However, interest in other Asian stock markets is not high. Only 5% invests in Japan and 3% invests in China. This shows that Korean youth do not have much confidence in the domestic stock market, with the reason given that the domestic market is somewhat more volatile than foreign markets.
Research also shows that students' financial literacy levels are gradually increasing, with more and more young people starting to invest early. More than half of respondents said they started investing in the past three years, and many invested large sums, more than $7,180. This trend is attributed to the popularity of online trading applications and the rise of online investment communities, making it easier to access information and make transactions.
However, in fact, more than 17% of students admitted to having to take out debt to invest in stocks and digital assets, showing the rise of both financial returns and risks among Korean youth. Experts recommend that young investors need to be fully equipped with knowledge, understand their own risk appetite and choose appropriate investment channels to avoid unnecessary risks.
Besides stocks and cryptocurrencies, Korean students also participate in other financial products such as fund certificates, ETFs, and bonds. Surveys show that young people in this country are losing confidence in traditional financial systems such as pension services, savings accounts and the domestic stock market.
This survey reflects a profound change in the financial outlook of South Korean youth, who are now more willing to invest in global markets and cryptocurrencies than domestic markets. This trend is driven by expectations of higher profits and the perception of stability in foreign investment. This shift requires policymakers to make appropriate adjustments to attract domestic investment capital flows, while enhancing financial education for the young generation.
