One-Third of South Koreans Now Own Crypto: Bank of Korea

Key Takeaways

• South Korea recorded a significant jump in crypto investments after the U.S. election.
• One-third of the Korean population is now invested in cryptocurrencies.
• The trading volume of crypto exchanges in the country is nearing the levels of its stock market.

South Korea has witnessed a remarkable surge in crypto adoption, with more than 15 million citizens—approximately one-third of the population—now owning digital assets.

The milestone, reported by the Bank of Korea , underscores the growing integration of cryptocurrencies into the nation’s financial fabric.

The report highlights a sharp uptick in crypto investments following the U.S. presidential election, suggesting external economic and political factors may have influenced investor sentiment.

A Nation of Crypto Enthusiasts

According to the Bank of Korea, the total number of crypto investors reached 15.59 million by the end of November 2024, marking a significant increase of 610,000 from October.

This growth trajectory reflects a consistent monthly rise in adoption since the start of the bull market in July.

• July 2024: 14.74 million investors
• August 2024: 14.82 million investors
• September 2024: 14.88 million investors
• October 2024: 14.98 million investors

The estimate is based on data from the top five domestic exchanges, ensuring an accurate reflection of active investors rather than inflated figures from multiple accounts held by individuals.

Status of domestic crypto exchanges in South Korea. Source: Office of Rep. Lim Gwang-hyun

South Korea’s pro-crypto stance, paired with strict regulatory oversight, has created a unique environment for growth. However, the absence of comprehensive guidelines continues to be a double-edged sword, balancing innovation with uncertainty.

South Koreans Hold $69 Billion in Crypto Assets

By the end of November, South Korean crypto investors collectively owned 102.6 trillion KRW ($69 billion) in digital assets.

This figure nearly doubled from October’s holdings of 58 trillion KRW ($39 billion), showcasing the rapid accumulation of wealth in the sector.

The per capita crypto holdings stand at approximately 6.58 million KRW ($4,400), while daily trading volumes on the top five exchanges are approaching 15 trillion KRW ($10 billion).

“The virtual asset transaction volume is rapidly increasing to a level comparable to that of the stock market,” noted Rep. Lim Gwang-Hyun. “We need thorough government-wide preparations to establish sound market practices that protect users and ensure stability.”

Regulatory Challenges and Opportunities

Despite its growing prominence, South Korea’s crypto market faces unresolved regulatory challenges.

A long-anticipated crypto tax policy, initially set for implementation in early 2025, has been postponed until 2027 due to the lack of a cohesive framework.

Industry experts believe that clear guidelines could further fuel adoption by providing investors with greater confidence and security. Until then, the market’s growth trajectory remains vulnerable to external shocks and policy shifts.

As South Korea’s crypto ecosystem continues to expand, the government faces mounting pressure to strike a balance between fostering innovation and ensuring the integrity of its financial markets.

The next steps will likely define the nation’s role as a global crypto leader.