1 in 4 South Korean Adults Now Hold Crypto – Here’s Why Adoption Is Exploding

South Korea’s crypto craze hits a new milestone—25% of adults now own digital assets. From hyper-trading culture to regulatory tailwinds, the trend shows no signs of slowing.

The FOMO is real (and so are the fees)

Local exchanges like Upbit and Bithumb dominate trading volumes, fueled by a retail army chasing altcoin moonshots. Tax incentives and seamless KRW onboarding don’t hurt either.

Regulators flip from foes to frenemies

After early crackdowns, the FSA now greenlights crypto ETFs—because nothing softens bureaucrats like taxable capital gains.

Warning: volatility ahead

With leverage rates doubling global averages, South Korea’s crypto boom could become Wall Street’s next ‘I told you so’ moment. But try telling that to the 25% already all-in.

Why is the South Korean stock price rising?

Local media reports that the ruling party has named crypto advocate Kim Yong-beom as policy chief, signaling strong support for digital asset innovation.

One major proposal includes allowing small firms (with at least 500 million won in equity) to issue stablecoins. While this MOVE excites markets, it has also raised concerns about systemic risk.

In response, stocks tied to stablecoin and digital currency projects have seen explosive gains. Kakao Pay and LG CNS have rallied over 100% and 70%, respectively.

Other crypto-linked stocks, like Aton and ME2ON, have also surged—rising more than 80% and nearly tripling during the same period.

Boosted by these rallies, the Kospi index is now up nearly 30% year-to-date, making it Asia’s best-performing market in the first half of 2025.

Retail frenzy and margin risk

The ongoing rally highlights growing interest in digital assets and is drawing in retail investors.

According to local media, South Korean retail investors are increasing their risk exposure, with margin loans soaring to 20.5 trillion won ($15 billion).

This spike in margin lending raises the risk of steep losses if the market pulls back—potentially affecting the wider financial system.

The government’s pivot toward stablecoins and digital currencies follows a surge in activity: South Koreans traded 57 trillion won ($42 billion) in U.S. dollar-pegged stablecoins.

In response, the Bank of Korea is now fast-tracking the development of its own official digital won.

Crypto ownership at record highs

In addition, a recent report from the Hana Institute of Finance revealed that 25% of South Koreans aged 20 to 50 now own digital assets.

Among them, people in their 40s made up the largest group at 31%, followed by those in their 30s (28%) and 50s (25%).

Notably, 78% of crypto investors in their 50s said they invest to “raise a large sum of money,” while 53% said they are preparing for retirement.

These figures reflect growing confidence and strong interest in South Korea’s expanding digital asset market.