Over a quarter of South Koreans aged 20 to 50 are now investing in cryptocurrencies, with digital assets accounting for 14% of their total financial portfolios, according to a new report from the Hana Institute of Finance. The study revealed that crypto adoption is strongest among those in their 40s, followed by investors in their 30s and 50s.

Investor behavior is shifting rapidly. The number of people making regular crypto purchases jumped from 10% to 34%, while mid-term trading has nearly doubled. Meanwhile, short-term trading is slightly declining. The report also showed a growing reliance on official exchanges and analytical tools, replacing word-of-mouth as the main source of crypto information.

Bitcoin remains the top asset, held by 60% of investors. However, as users gain more experience, many are exploring altcoins and stablecoins. NFTs and security tokens remain niche, with most investors sticking to coins.

Notably, 70% of respondents plan to expand their crypto holdings. Confidence in the market would increase if traditional banks played a bigger role and if stronger legal protections were introduced. Regulatory restrictions, like the inability to link multiple bank accounts to crypto exchanges, remain a major barrier.

Financial instability is a key driver. Youth unemployment in South Korea stands at 6.6%, more than double the national average. Eli Ilha Yune of Anzaetek says the crypto surge is not due to faith in blockchain, but financial desperation. Young Koreans, shut out of real estate and stock market gains, are turning to crypto as their only path to wealth.