Is "Squid Game" a reality? 40% of Korean college students rely on currency speculation to pay off their debts. Are young people almost unable to hold on?

40% of students in South Korea invest in cryptocurrencies

According to Korean media "Delighti", a recent survey by Korea Investment and Securities Corporation (KIS) showed that nearly half of South Korean college students are turning to cryptocurrency, believing it to be a lifeline to solve their increasing debt and economic woes. This unexpected trend highlights the severity of the student debt crisis, forcing young people to adopt innovative and risky financial strategies in the hope of achieving financial stability and independence.

The survey showed that 40% of the students surveyed were invested in cryptocurrencies such as Bitcoin, with a primary focus on stocks of companies listed on the New York Stock Exchange, with 89% saying they planned to diversify their portfolios soon. This reflects the lack of confidence among South Korea's young people in the local stock market, which many students say is more volatile.

Research also shows that students' financial literacy levels are gradually improving, and more and more young people are starting to invest in advance. More than half of those surveyed said they had started investing in the past three years, with many investing significant sums of more than $7,180.

Korean girls love speculating on coins! The proportion of users exceeds that of other regions, and the demand for instant wealth drives the market?

Escalating debt and economic stress: The Squidward game becomes a reality

In the popular TV series Squidward, fictional contestants face dire consequences for massive debts, forcing them to play dangerous games to win huge prizes to pay off their debts. In reality, young people in South Korea face similar financial pressures, and many, like the characters in the drama, are forced to take extreme measures to deal with financial responsibilities.

South Korea's economic pressure is increasing day by day, especially the rise in housing prices and living costs, which has led to a large number of young people being burdened with heavy debts. These economic pressures have been exacerbated by the Bank of Korea's monetary tightening policy. Young people often rely on education loans to pay for tuition and living expenses, but education debt is growing faster than other types of consumer debt.

More than one in five households aged 19 to 39 have a debt-to-income ratio of more than 300% in 2021, according to the latest survey data, compared with just 8% in 2012. By 2024, this figure will rise further. This financial distress disproportionately affects two-person households, families with children and low-income people in the greater Seoul area, highlighting the region's growing socioeconomic disparity.

Coupled with South Korea's aging population, many young people lack confidence in systems such as pension services, savings accounts and the domestic stock market. In April, a survey of people aged 20-39 found that more than three-quarters of South Koreans aged 20-39 "distrust" the pensions provided by the state.

Source: Statistics From the Korean population pyramid, we can see that the problem of population aging is becoming more and more serious.

The future of cryptocurrency in South Korea

Facing the expanding debt crisis, more and more young Koreans are choosing to invest in cryptocurrencies, hoping to improve their financial situation through high-risk, high-return investments. High returns are the main reason why they choose cryptocurrencies.

The future of South Korea’s cryptocurrency market looks bright but full of uncertainty. Despite government efforts to increase transparency and security through policy changes, the allure of high pay rates is likely to continue to attract students saddled with debt.

South Korea plans to launch a system focused on crypto asset management by 2025 to combat tax evasion and monitor illegal transactions. Ongoing policy changes aimed at regulating cryptocurrency exchanges and ensuring investor protection will likely impact the future popularity and viability of cryptocurrencies as an investment option in the country.

In the face of severe economic pressure, interest in cryptocurrencies has surged among South Korean students, reflecting the severity of the student debt crisis. As young people explore the cryptocurrency market, an emphasis on responsible investment practices and financial education will be critical to help them secure their financial future in the ever-changing cryptocurrency industry.