How crazy is South Korea's cryptocurrency trading scene? Local media reports that in just six months, the demand deposits of the five major domestic banks have decreased by nearly 27 trillion KRW, while the recently surging cryptocurrencies have seemingly become the destination for this liquidity. Additionally, surveys show that many people in their 50s and 60s in South Korea have also joined the ranks of cryptocurrency traders. While the industry appears to be maturing, the class-reversal effect of cryptocurrencies in the minds of Koreans remains strong, with everyone hoping to turn their fortunes around through trading.
Cryptocurrency trading has become a national movement, with a 30% increase in users aged 60 and above from the end of 2021 to now.
According to local media reports, the balance of demand deposits 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 trillion 6.669 billion KRW, a decrease of over 5 trillion KRW compared to the end of last month. Compared to 26.9477 trillion KRW less than five months ago at the end of June. Demand deposits are often seen as idle funds, and for South Korea, a major cryptocurrency trading nation, cryptocurrencies have become one of the main destinations for this liquidity.
Just in November alone, Bitcoin, the world's eighth largest asset by market capitalization, which is worth more than silver, saw a monthly increase of 40%. Additionally, cryptocurrencies like the meme coin DOGE, popularized by Elon Musk, and Ripple, along with many altcoins, also exhibited fierce price doubling trends in a short period. On November 5, the day of the U.S. elections, the price of XRP was just 0.51 USD, but within a month, it soared to over 5 times its original value, reaching the third-largest market capitalization, following Bitcoin and Ethereum. This aligns with our earlier report indicating that the altcoin season will explode in the fourth quarter.
For the people of South Korea, cryptocurrency trading has become a national movement regardless of age or generation (similar to Taiwan's stock market at the end of the last century?). Reports indicate that many individuals in their 50s and 60s have already invested their retirement funds in cryptocurrencies, fearing they might miss the opportunity to turn their fortunes around. Previous cycles of wealth generation through cryptocurrencies have also created many myths in Korean society, such as some people retiring or buying homes thanks to cryptocurrency in 2021.
58-year-old housewife Ms. Kim said: 'It feels too wasteful to just keep my retirement funds in a bank account, so I tried investing in Bitcoin and Dogecoin. Although the price volatility scares me, I haven't invested much, but I plan to continue investing regularly.'
Reports cite data obtained by Democratic Party member Ando Je from the Financial Supervisory Service, indicating that as of the end of September, the number of users over 60 years old at Korea's two major cryptocurrency exchanges, Upbit and Bithumb, reached 775,718. The total amount of cryptocurrency assets held by these users was 6 trillion 760.9 billion KRW, with an average investment amount of about 8.72 million KRW per person.
Compared to other age groups, investors aged 60 and above have the highest average investment amount, surpassing those under 20 (980,000 KRW), those aged 21 to 30 (2.98 million KRW), those aged 31 to 40 (5.26 million KRW), and those aged 41 to 50 (7.72 million KRW).
Moreover, the number of older investors entering the cryptocurrency market has also significantly increased. The number of users aged 60 and above on Upbit and Bithumb has risen by 30.4% (188,834 users) since the end of 2021, while the number of users in their 50s increased by 22.5% (356,169 users) during the same period. In contrast, the number of users in their 20s decreased by 6.4%, while those in their 30s increased by 8.3%.
As a supplement, the Telegram channel Crypto Pojangmacha, focusing on the Korean market, also shared the local situation. The Bithumb Lounge, located at 1329-7, Seocho-dong, Seocho-gu, Seoul, is a place dedicated to assisting with account openings and registrations. According to the pictures shared, the seating area at Bithumb Lounge is currently filled with people waiting to open accounts.
The Korean market is experiencing a wave of asset outflows, attributed to strict regulation.
Additionally, local media reports suggest that the Korean market seems to be facing a phenomenon of asset outflow. In November 2024, the total monthly trading volume of stablecoins across Korea's top five exchanges (Upbit, Bithumb, Coinone, Korbit, and GOPAX) was approximately 16.17 trillion KRW (1.15 billion USD).
The news attributes this to the virtual asset protection law that went into effect in July, which restricted the autonomy of listing new coins, prohibited derivative trading, and limited new services on domestic platforms, including banning corporate accounts and restricting financial institutions from entering the virtual asset space, leading some users to transfer their assets to overseas accounts in the form of stablecoins.
【Disclaimer】The market has risks, and investment should be approached with caution. This article does not constitute investment advice, and users should consider whether any opinions, viewpoints, or conclusions presented herein are suitable for their specific circumstances. Invest at your own risk.
This article is reprinted with permission from: (Chain News)
'I don't want to be a beggar anymore! Why are South Korean middle-aged and elderly people frantically investing their retirement funds in cryptocurrencies?' This article was first published in 'Crypto City'.
