Nearly 200 South Koreans in their 20s hold over $750k in crypto: report

More than 185 South Koreans in their 20s each own over $750,000 in digital assets, according to data from Upbit and Bithumb.

As Maeil Business Newspaper reported on Oct. 3, South Korea-based crypto exchanges Upbit and Bithumb submitted a “Virtual Asset Holding Situation” report to Ahn Dogul of the Democratic Party of Korea through the Financial Supervisory Service.

The report found that as many as 3,759 South Koreans had crypto accounts worth 1 billion won (about $750,000) by the end of 2023. Among them, more than 185 investors in their 20s formed the third largest group, each holding their own shares. Assets in cryptocurrencies such as Bitcoin (BTC).

The report states that the total value of crypto assets is 967.2 billion won, meaning that every South Korean in their 20s owns approximately 5.23 billion won (or $3.91 million) worth of crypto. Industry officials suggest that these young individuals are likely converting the money they received from their parents into cryptocurrencies or successfully investing in high-performing altcoins.

However, the age group with the most crypto holders was South Koreans in their 40s, with a total of 1,297 people. Each person in their 40s had an average of 9.29 billion won, or $6.95 million.

In terms of crypto reserves, South Koreans in their 50s hold the most money in their accounts. The total value of their accounts is ₩13.82 trillion won, meaning that every South Korean in their 50s owns an average of ₩14.86 billion won, or $11.11 million, worth of crypto.

Tough regulations shape South Korea’s crypto landscape

Democratic Party representative Ahn Doğul, commenting on the prevalence of cryptocurrency in the country, stated that the South Korean government should take further steps to ensure that cryptocurrencies can be managed transparently and systematically.

Despite the growing adoption of crypto, the South Korean government has maintained a negative stance towards the industry, and regulators recently imposed a six-figure oversight fee on crypto exchanges operating in South Korea. Local crypto exchanges are also required to keep 80% of their assets in cold storage.

In July, South Korea’s Ministry of Economy and Finance announced plans to impose a 20% tax on the amount exceeding the basic deduction of 2.5 million won (about $1,800), but the new law has since been postponed until 2028.