Into The Cryptoverse: Understanding Crypto Users in South Korea

2023/10/11 09:30:00

At KuCoin, we firmly believe that fostering a deeper understanding of the crypto community is fundamental to shaping a more inclusive and responsible financial ecosystem. In keeping with our continued dedication to research and analysis, we are pleased to introduce the 16th edition of our survey report series, titled "Into the Cryptoverse: Understanding Crypto Users in South Korea“. This survey report is based on a total sample of 500 adult crypto investors aged 18 to 60 in South Korea. Crypto users are defined as those who currently own or have invested in crypto over the past six months. Survey respondents were polled online from May 5th to May 12th, 2023. The data presented in this report are based on the survey conducted by KuCoin using SurveyMonkey Audience.

Crypto Adoption in South Korea: Over a Quarter (26%) of South Korean Adults Invest in Crypto, With Increasing Engagement from Women, Accounting for 67% of Gen Z Crypto Investors

According to the survey, over a quarter (26%) of South Korean adult internet users aged 18 to 60 own crypto or have invested in crypto in the past six months. The survey shows that among the overall crypto investor profile, there is a larger percentage of males (56%) engage in crypto investment compared to females (44%). However, one noteworthy trend from the survey data is the increasing participation of young women aged 18-30 (Gen Z) in crypto investment. Gen Z's higher percentage of female participation (67%) compared to Gen Y (33%) and Gen X (39%) suggests a potential shift in gender dynamics within the crypto space, signifying a potentially transformative shift in the demographics of crypto investors, with women playing a more significant role in the future of the industry.

Crypto Growth Fueled by Youth: 35% of Gen Z Crypto Investors Joined in Last Six Months, While A Third of Gen Z and Gen Y Invest More Than 50,000 KRW in Crypto

The data indicates a substantial influx of new investors into the South Korean crypto market, with 25% of overall crypto investors having made their first crypto investment within the last six months. This is particularly significant among Gen Z of whom 35% have only started in the past six months, highlighting the significant contribution of the younger generation to the growing crypto investor base. As the data reveals differences in the amount of money invested in crypto across generations, we observed that younger generations also contribute a higher amount of crypto investment. Gen Z and Gen Y investors are more likely to invest larger amounts in crypto, with 31% of Gen Z and 30% of Gen Y investing above ₩50,000, compared to 21% of Gen X doing the same. Gen X investors tend to invest small amounts, with 42% investing below ₩5,000.

Motivations of Crypto Investment: While Motivated by Long-Term Gains and Risk Diversification, 38% of Gen Z Crypto Investors Desire to Get Rich Overnight With Crypto

The survey reveals generational differences in crypto investment motivations. The primary motivation for crypto engagement across all generations is long-term wealth accumulation (47%). However, Gen Z and Gen Y are slightly less focused on this compared to Gen X, who is more focused on using crypto for long-term investment (55%) and portfolio diversification (38%), reflecting a more conservative approach to crypto investing among older generations. On the other hand, Gen Z stands out at 38% indicating a desire to “get rich overnight” compared to the overall average of 30%, suggesting a greater inclination among younger investors to seek quick profits. Gen Z is more likely to invest to "not miss out on a popular trend" (32%) compared to other generations, suggesting a FOMO (Fear of Missing Out) mindset, strong influence of trends and social factors on their investment decisions, which aligns with their higher trading frequency - 64% of Gen Z crypto investors trade crypto more than once a week, compared to Gen Y at 48% and Gen X ay 42%. Gen Z also shows a slightly higher interest in the fun aspect of crypto investment (27%), potentially viewing it as a form of entertainment beyond financial gain.

Crypto Investment Interest: Bitcoin and Ethereum Remain Dominant Choices, Followed By NFT and Metaverse Projects; Gen Z Prefer Public Chains and DeFi Projects

Bitcoin is the most preferred for investment among all generations (65%), and more popular among Gen X (71%) and Gen Y (68%), aligning with their motivations for using crypto as value storage and risk hedge. Ethereum follows as the second most popular choice among 49% of overall crypto investors, with Gen X (56%) showing higher interest. NFT-themed investments and the Metaverse concept have gained traction with over a quarter of crypto investors expressing interests. Stablecoins and public chains also have a notable level of interest, demonstrating their importance in the crypto ecosystem. Stablecoins, which are often used for stability in crypto trading, have a moderate level of interest among all generations, with Gen Y showing the highest interest (22%). Public chain projects are particularly interesting to Gen Z (27%). DeFi and GameFi also garner attention from younger generations, with Gen Z and Gen Y expressing stronger interest in these categories. Meme coins and their associated hype-driven investments are slightly more appealing to Gen Z (16%).

Exploring Crypto Usage in South Korea：HODLing is The Most Common Use Case Embraced by 39% of South Korean Crypto Investors; 29% of Gen Z Crypto Investors Bought NFT

The survey investigated how South Korean investors use crypto and the generational differences. HODLing crypto (hold for the long term) or participating in earning (such as through staking or yield farming) are the most common uses of crypto across all generations, indicating a strong interest in crypto as a means of accumulating wealth and generating passive income. Gen Y shows the highest interest at 45%. Trading is another popular use case for crypto, with 37% engaging in it. Gen X is relatively more active in trading as opposed to HODLing/ earning / staking crypto. Buying NFTs is another notable use case, with 18% indicating their participation. Gen Z crypto investors are particularly interested in NFTs, with 29% engaging in this activity. This demonstrates the rising popularity of digital collectibles and unique blockchain-based assets, especially among younger generations. Peer-to-peer transfers (18%) and online shopping (17%) using cryptocurrencies are moderately common use cases. Gen Z shows a relatively higher interest in peer-to-peer transfers (21%) and online shopping (24%), suggesting a willingness to use cryptocurrencies for everyday transactions.

Learning About Crypto：43% of Gen Z Learn Crypto Investment via Social Media; YouTube, Instagram and Kakao are Top Social Media for Trusted Crypto News

When it comes to learning about crypto, the most popular way is through friends and family, with 51% overall citing this as their source of knowledge. This trend is consistent across generations, although Gen X (59%) places slightly higher trust in this source. Communities, including online forums and discussion groups, are the second most common source of learning, with 42% of South Korean crypto traders overall relying on them. 30% of respondents, especially in Gen Z (43%), turn to influencers for crypto knowledge, suggesting increasing influence of online personalities in shaping the crypto learning experience. Gen Z also over-indexes on learning through tutorial content (40%) and from other crypto traders (36%).

When asked about trusted crypto news sources, 43% of respondents rely on YouTube, especially Gen Y (48%) placing the highest trust in it for crypto updates. Traditional crypto news media outlets are trusted by 37% overall, with Gen Z (40%) and Gen X (39%) more likely to turn to these outlets for information. General finance media is trusted by 29% of respondents overall. Gen X (33%) relies on this source the most. Popular social media platforms such as Instagram and Kakao are also sources of crypto news, especially among Gen Y, of which 22% rely on Instagram and 19% rely on Kakao for crypto information. Gen Z tends to trust emerging social media platforms such as Twitter/X (18%), Telegram (18%) and TikTok (17%) more than other generations.

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Into The Cryptoverse: Understanding Crypto Users in South Korea

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