Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
40% of crypto investors invest for retirement: report
A representation of Bitcoin and a price chart / Yonhap
By Lee Yeon-woo
Four out of 10 cryptocurrency investors invest not only for short-term gains but also as a means of preparing for retirement, the Hana Institute of Finance said Sunday.
According to a report released by the private think tank, more than half of investors in their 50s cited retirement planning as their primary motivation for investing in cryptocurrencies. In contrast, about a third of investors in their 20s said they invest casually, often following trends or for entertainment purposes.
"Compared to the past, the proportion of short-term investors has declined, as has the number of those investing for trends or entertainment," the report stated. "This reflects a shift in perception from speculation to investment."
The report revealed that 51 percent of people in their 20s to 50s have invested in cryptocurrencies at some point, with 27 percent currently holding such assets. On average, these investments account for 14 percent of their total financial assets, amounting to approximately 13 million won ($9,527).
By age, people in their 40s represented the largest share of investors at 31 percent, followed by those in their 30s at 28 percent, 50s at 25 percent and 20s at 17 percent (figures are rounded off). In terms of gender, men made up 67 percent of investors, more than twice the share of women.
Over 60 percent of cryptocurrency investors entered the market around 2020, when the prices of virtual assets surged amid increased market liquidity during the COVID-19 pandemic.
While 75 percent began investing with less than 3 million won, 42 percent have since accumulated more than 10 million won in total investments.
While the majority owned Bitcoin, 36 percent held only altcoins, without any Bitcoin exposure. The report also noted that the longer the investment period, the higher the proportion of investors who primarily allocate their holdings to stablecoins.
The survey was conducted in April with 1,000 participants nationwide, including a random sample of 700 adults aged 20 to 50 and an additional booster sample of 300 cryptocurrency investors.