A recent report from South Korean virtual asset exchanges Upbit and Bithumb revealed the wealth in the country’s crypto market. The report, titled “Virtual Asset Holding Status,” submitted to the National Assembly Planning and Finance Committee by Democratic Party member Ahn Do-geol, showed that 3,759 individuals held high-value accounts, each exceeding 1 billion won (approximately $750,000). Among these individuals, over 185 South Koreans in their 20s were found to own virtual assets, making them the third-largest segment of crypto investors. The total value of the virtual assets owned by these young investors is 967.2 billion won, averaging about 5.228 billion won ($3.91 million) per person.
Industry experts attribute the assets held by South Korean investors, particularly in their 20s, to either inherited assets or savvy investment decisions made early in their careers. While the South Korean youth have an impact on the cryptocurrency market, investors in their 40s hold significant influence as well. A total of 1,297 members from this group own assets worth over 1 billion won, with a collective total of 12.497 trillion won, averaging 9.29 billion won ($6.95 million) per person. However, South Koreans in their 50s are at the top of the food chain in terms of total asset value, with 930 individuals holding accounts exceeding 1 billion won. This age group leads in total value, holding assets worth 13.82 trillion won, averaging 14.86 billion won ($11.11 million) per person, surpassing other age groups in the country.
The report also revealed widespread interest in cryptocurrencies among South Koreans, with approximately 7.7 million active virtual asset accounts on platforms like Upbit and Bithumb. These accounts have an average holding amount of 8.93 million won, indicating a high level of interest in cryptocurrencies among the general population in South Korea. However, concerns loom over the growth of the crypto industry in the country. The Financial Supervisory Service (FSS) has initiated investigations into unfair cryptocurrency transactions, including those initiated using undisclosed information and engaging in “price manipulation trading.” Regulators will sift through large datasets from regulated cryptocurrency exchanges and reports from other major financial regulatory bodies to identify fraudulent transactions and prosecute violators.
The Financial Services Commission (FSC) in South Korea plans to utilize data investigation probes, including “on-site data seizures,” and cooperate with overseas regulatory counterparts to analyze suspicious cross-border transactions and other anonymous transactions. These efforts aim to crack down on illicit activities in the crypto market and ensure a fair and transparent trading environment for investors. The regulatory scrutiny highlights the challenges and potential risks associated with the rapid growth of the crypto industry in South Korea, as authorities work to protect investors and maintain the integrity of the market.
