Latest news with #HanaInstituteofFinance
Arabian Post
30-06-2025
- Business
- Arabian Post
Growing Crypto Commitments Among South Koreans Aged 20–50
Survey data from the Hana Institute of Finance indicates 27% of South Koreans aged 20 to 50 now hold cryptocurrencies, equating to roughly 14% of their total financial portfolios. Those in their 40s lead the trend with a 31% ownership rate, closely followed by those in their 30s and 50s. Notably, 70% of respondents across all age groups are planning to increase their crypto holdings in the face of mounting pressures in the job market and housing affordability. This behavioural shift signals an evolution in investment patterns. Regular crypto purchases among this cohort have increased from 10% to 34%, while mid-term holdings — defined as positions held for months to a year — rose from 26% to 47%. Meanwhile, short‑term speculative trading has declined. 'The perception is shifting from speculation to strategic investment,' notes Yoon Sun‑young, a researcher at the Hana Institute. Bitcoin continues to dominate these portfolios, with six in ten owners including it among their crypto holdings. Many are diversifying further into altcoins and stablecoins, though NFTs and security tokens remain niche, with around 90% of investors sticking solely to coin-based assets. This maturation marks a departure from the earlier trend‑driven, high‑volatility investing to more structured, long‑term strategies. ADVERTISEMENT Motivations for engagement increasingly reflect concerns beyond quick gains. Among individuals in their 50s, 78% cite wealth accumulation as a primary driver and 53% explicitly see crypto as a tool for retirement planning. Across all participants, interest in portfolio diversification and systematic savings emerged as common themes. The Korea Times reports four in ten investors now view crypto as a legitimate component of pension preparation. Economic pressures—particularly youth unemployment of 6.6%, which is over twice the national average—combined with high housing costs and stagnant wages, are pushing younger demographics toward crypto as an alternative investment option. At German Blockchain Week, Eli Ilha Yune, chief product officer at Anzaetek, described crypto investment for many young Koreans as 'a lifeline' rather than enthusiasm for blockchain ideals. Despite this momentum, challenges persist across the ecosystem. Investors express concern about market volatility and fraud risks. A major logistical frustration stems from a government-mandated system allowing only one bank account linked per exchange. Around 70% of users have indicated support for linking multiple accounts to improve convenience. Survey respondents also cited the expansion of traditional financial institutions' roles and reinforced legal protections as key to boosting confidence — at rates of 42% and 35% respectively. Institutional adaptation is underway. KB Kookmin Bank, alongside seven other major domestic banks, has filed trademarks for won‑pegged stablecoins and is preparing to develop blockchain‑based financial products. Meanwhile, lawmakers have been advancing a Digital Asset Basic Act, with President Lee Jae‑myung's administration expected to oversee further regulatory frameworks by the second half of 2025. South Korea already hosts over 16 million crypto account holders—surpassing its stock investor base—and accounts for approximately 102 trillion won in assets held onchain. As the country moves further into regulated crypto waters, with legislation and infrastructure catching up to demand, the market appears set on a path toward mainstream acceptance and deeper integration into financial portfolios.
Korea Herald
29-06-2025
- Business
- Korea Herald
1 in 4 Koreans aged 20–50 invests in crypto
About 1 in 4 Koreans aged 20 to 50 currently holds virtual assets, with the majority of these investors being men in their 30s and 40s working in white-collar jobs, a new report from the Hana Institute of Finance showed Sunday. The report, titled 2050 Generation's Virtual Asset Investment Trends, highlights how investor behavior has evolved from trend-chasing to a more analytical and planned approach. The study shows that aggressive and risk-tolerant individuals are significantly more likely to invest in cryptocurrencies. Despite holding fewer liquid assets than the average, these investors allocate more capital overall to financial products, with virtual assets comprising some 14 percent of their total holdings. Initially driven by fear of missing out, or FOMO, motivations for virtual asset investment have shifted. Now, more investors cite growth potential, portfolio diversification and structured savings as key reasons. Channels for gathering investment information have also changed, with reliance on peer influence declining and the use of official exchanges and analytical platforms rising. 'Virtual assets are already playing a central role in investor portfolios and will likely become more mainstream. As such, there is strong demand for legal frameworks and expanded roles for traditional financial institutions," said Yoon Sun-young, a research fellow at Hana Institute of Finance. For banks, it is both an opportunity and a challenge, according to Yoon. "They must prepare proactively for ecosystem expansion by diversifying crypto-based financial products and enhancing integrated investment management.' However, friction in the investment process persists. Some 76 percent of respondents reported inconvenience due to the inability to link their existing bank accounts to crypto exchanges. This issue stems largely from the mandatory one-exchange, one-bank system in Korea. When choosing a trading platform, investors now prioritize which bank the exchange is linked with over the platform's interface or trading features. Currently, 70 percent of respondents currently use Upbit, which is linked to K bank. The report also indicates that 7 in 10 respondents are interested in future investments in virtual assets. Many view integration with traditional financial institutions and stronger regulatory frameworks as key to improving trust and convenience. Notably, over half of current investors said they would consider expanding their relationship with banks offering crypto-related services if incentivized with promotions or benefits. Bitcoin remains the most favored asset, but former investors show growing interest in stablecoins, a type of cryptocurrency the value of which is pegged to another asset, such as a fiat currency or gold, especially those that could be introduced through regulated channels.
Korea Herald
16-04-2025
- Business
- Korea Herald
Wealthy Koreans shift focus from real estate to gold, bonds and crypto
'Young rich' under 50 show strong appetite for virtual assets, overseas stocks More wealthy South Koreans are eyeing diversification of their investments, seeking out safe-haven assets such as gold and bonds in their portfolios instead of real estate, a traditional investment here, research conducted by a think tank under Hana Financial Group showed. The wealthy are increasing their stake in cryptocurrency as well. The Hana Institute of Finance released the 2025 Korea Wealth Report Wednesday. This year, the online survey was conducted on 3,010 Hana Bank customers in December. Of the respondents, 884 with over 1 billion won ($702,100) in financial assets -- including cash, bonds and stocks -- were classified as "wealthy." Those with between 100 million won and 1 billion won in financial holdings -- 1,545 of the respondents -- were defined as "well-off." While 40.4 percent of the wealthy responded they are likely to up their savings this year, 32.2 percent also answered they are likely to invest in gold, a staple safe-haven asset. Thirty-two percent and 29.2 percent showed an inclination to invest in bonds and exchange-traded funds, respectively. "The wealthy are trying to minimize the risk amid uncertainties through diversified investments," the think tank assessed. This year, the wealthy are less inclined to make new investments in real estate. The wealthy's inclination to purchase real estate stood at 44 percent, inching down from 50 percent last year. The inclination to sell, on the other hand, rose from 31 percent to 34 percent on year, according to the report. 'Though the wealthy -- who are accustomed to building wealth on real estate -- had prioritized real estate investment rather than financial assets, they are showing a different stance this year,' the think tank viewed. With major economies stepping up to embrace cryptocurrency in their regulatory boundaries over the years, more are showing interest in the investment tool. Of the "well-off" respondents, one-third had experience investing in virtual assets. The amount of the virtual assets owned by the respondents rose by a yearly average of 15 percent in the past three years. Some 34 percent of the virtual asset investors held more than four types of cryptocurrencies. Over 70 percent of the investors have put in more than 10 million won in crypto. Over five out of 10 virtual asset investors responded they are to continue their investments in crypto this year. Three responded they stood neutral. While profitability was the main reason for taking interest in virtual assets, increased investment accessibility and the growth potential of cryptocurrency were also cited as reasons to invest. "The wealthy anticipating growth of virtual assets shows the sector has matured. Yet, the polarization for preference was distinct with the lack of a regulatory safety net and understanding of the new technology,' Yoon Sun-young, a researcher at the think tank, said. The "young rich," respondents in their 40s or younger with financial assets over 1 billion rose by a yearly average of 6 percent in the past five years. They were strongly inclined to invest in foreign equity, planning to increase the foreign equity investment to 40 percent of their portfolios. "The wealthy are showing stronger interest in financial investments and the young rich are leading the shift. They are leading investment trends such as crypto and are strongly inclined to use financial investments to increase assets," Hwang Sun-kyung, a researcher at the think tank, said.
