How crazy is South Korea, a big currency speculator? Local media stated that demand deposits at the country's five largest banks have dropped by nearly 27 trillion won in half a year, and cryptocurrencies, which have been rising rapidly recently, have become a place for liquidity. In addition, according to surveys, many Koreans aged between 5 and 60 are also among the ranks of currency speculators. Even as the industry seems to be maturing, the class reversal effect of cryptocurrency in the hearts of Koreans remains unabated, and everyone hopes to make a comeback through currency speculation.
Speculating in currencies has become a national movement, and the number of users aged 60 and older has increased by 30% since the end of 2021.
According to local media reports, the current deposit balance of the five major commercial banks in South Korea (KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH Nonghyup Bank) at the end of November was 592.6669 billion won, which was the same as the previous month. Compared with the end of the month, there was a decrease of more than 5 trillion won. This was a decrease of KRW 26.9477 trillion compared to the end of June five months ago. Demand deposits are often regarded as idle funds, but for South Korea, a major currency speculator, cryptocurrency has become one of the main flows of these liquidity.
In just November, the market value of Bitcoin, the world's eighth largest asset surpassing silver, had a monthly increase of 40%. Additionally, meme coin DOGE, led by Elon Musk, and a group of altcoins led by Ripple also experienced fierce price doubling in a short time. On November 5, the day of the US elections, the price of XRP was only $0.51, but within just one month, it skyrocketed to more than 5 times its original value, with its market cap rising to the third largest position, only behind Bitcoin and Ethereum. This aligns with our previous report that the altcoin season will explode in the fourth quarter.
(Is your altcoin on the list? Institutions predict that the altcoin season will explode in the fourth quarter.)
For the people of South Korea, trading cryptocurrencies has become a nationwide activity regardless of age or era (similar to the Taiwanese stock market at the end of the last century?). Reports indicate that many people in their 50s and 60s have already used their retirement funds to invest in cryptocurrencies, fearing they might miss out on opportunities for financial recovery. Previous cycles of wealth generation from cryptocurrencies have also created many myths in Korean society, such as some individuals retiring or buying houses through cryptocurrencies in 2021.
Ms. Kim, a 58-year-old housewife, said: 'It feels wasteful to just keep my retirement funds in a bank account, so I tried investing in Bitcoin and Dogecoin. Although the price fluctuations scare me, so I haven't invested much, I plan to continue investing regularly.'
Reports cited data obtained by Democratic Party member Ando Jie from the Financial Supervisory Service, stating that as of the end of September, the number of users over 60 at the two major cryptocurrency exchanges in Korea, Upbit and Bithumb, reached 775,718, with these users holding a total of 6.76 trillion Korean won in crypto assets, averaging about 8.72 million Korean won per person.
Compared to other age groups, investors over 60 have the highest average investment amount, surpassing those under 20 (980,000 won), those aged 21 to 30 (2.98 million won), those aged 31 to 40 (5.26 million won), and those aged 41 to 50 (7.72 million won).
Moreover, the number of older investors entering the cryptocurrency market has significantly increased recently. The number of users over 60 on Upbit and Bithumb increased by 30.4% (188,834 individuals) compared to the end of 2021, while users in their 50s increased by 22.5% (356,169 individuals). In contrast, the number of users in their 20s decreased by 6.4%, while users in their 30s increased by 8.3%.
As a supplement, the Telegram channel Crypto Cart (포장마차), focusing on the Korean market, shared the local situation, noting that the Bithumb Lounge, located at 1329-7, Seocho-dong, Seocho-gu, Seoul, is a place specifically for account opening and registration assistance. According to the images shared, the seating area at Bithumb Lounge is currently filled with people waiting to open accounts.
Source: @marshallog The Korean market is experiencing a wave of capital outflow, attributed to strict regulations.
In addition, local media reported that the Korean market seems to be facing capital outflow, with the total monthly trading volume of stablecoins at the top five exchanges in South Korea (Upbit, Bithumb, Coinone, Korbit, and GOPAX) in November 2024 being approximately 16.17 trillion Korean won ($1.15 billion).
The news attributed this to the virtual asset protection law that came into effect in July, which restricted the autonomy of listing coins, prohibited derivative trading, and limited new services on domestic platforms, including banning corporate accounts and prohibiting financial institutions from entering the virtual asset space, leading some users to transfer assets to foreign accounts in the form of stablecoins.
(First enforcement action after the passage of the virtual asset protection law in July: inspection of compliance at six institutions)
This article titled 'I don't want to be a beggar anymore' discusses the economic downturn in South Korea and the shift towards cryptocurrency trading, where middle-aged and elderly individuals are also investing their retirement funds, first appearing in Chain News ABMedia.
