The cryptocurrency boom and the growing number of investors
The cryptocurrency market in South Korea is experiencing an unprecedented rise: more than 30% of the country's population is actively investing in digital assets. According to the latest data, by the end of 2024, the number of crypto investors has reached 15.59 million people. This figure is a record for a country with a population of 51.23 million people.
South Korea is becoming one of the leading countries in terms of cryptocurrency trading volume. As of November 2024, the average daily trading volume on local exchanges was 14.9 trillion won ($10.5 billion), which is almost the same as the total volume of transactions on the KOSPI and KOSDAQ stock markets.
Main exchanges and market activity
Upbit, one of the largest platforms in South Korea, accounts for the lion's share of cryptocurrency activity. Since 2020, Upbit's market share has grown from 43% to 90%. Interestingly, 88% of all trading activity on the platform is accounted for by altcoins, which highlights investors' interest in alternative digital assets.
The country's largest crypto exchanges — Upbit, Bithumb, Coinone, Korbit and Gopax — continue to show growth. The total value of digital assets in November 2024 was 102.6 trillion won ($70.3 billion), which is 76% more than in October.
Growing popularity and regulatory challenges
The growing interest in cryptocurrencies and the increase in trading volumes are attracting the attention of the South Korean government. The representative of the Democratic Party, Lim Gwang Hyun, noted:
"The scale of digital asset trading is growing rapidly and is now comparable to the stock market. The government must fully prepare to create a secure trading environment, protect user rights, and ensure market stability."
However, growth is accompanied by challenges. The sudden declaration of martial law by President Yoon Seok-yeol in November temporarily affected market stability, but despite regulatory hurdles, interest in cryptocurrencies has not waned.
Prospects of the cryptocurrency market in South Korea
South Korea is steadily moving towards becoming a cryptocurrency leader in Asia. Due to the active trade and popularity of digital assets among the population, the country is showing an example of successful integration of cryptocurrencies into the economy. However, significant regulatory barriers have to be overcome to achieve sustainability and protect investors' rights.
Cryptocurrencies are becoming an integral part of South Korea's financial system every day, which can become a powerful driver of economic growth and attract investment in the coming years.