Here is the English translation:
How crazy is the crypto trading craze in South Korea? According to local media, the demand deposit balance of the five major commercial banks (KB Kookmin Bank, Shinhan Bank, KEB Hana Bank, Woori Bank, and NH Bank) in South Korea has decreased by nearly 27 trillion won in the past six months, and cryptocurrencies with recent strong price increases have become a major destination for this liquidity. Furthermore, according to the survey, many Koreans aged 50 and 60 have also joined the ranks of crypto traders. Although the industry seems to be maturing, the class reversal effect of cryptocurrencies in the minds of Koreans has not diminished, and everyone hopes to make a fortune by trading cryptocurrencies.
Crypto trading has become a nationwide movement, with a 30% increase in users aged 60 and above since the end of 2021
According to local media reports, as of the end of November, the demand deposit balance of the five major commercial banks in South Korea (KB Kookmin Bank, Shinhan Bank, KEB Hana Bank, Woori Bank, and NH Bank) was 592.6669 trillion won, a decrease of more than 5 trillion won compared to the end of the previous month. Compared to the end of June, it has decreased by 26.9477 trillion won. Demand deposits are often seen as idle funds, and for the crypto-crazy South Korea, cryptocurrencies have become one of the main destinations for this liquidity.
Just in November, the world's eighth-largest asset Bitcoin, which has a market capitalization exceeding that of silver, had a monthly price increase of 40%. In addition, meme coins like Doge led by Musk and a host of altcoins also had a violent short-term price doubling trend. On November 5, the day of the US election, the price of XRP was only $0.51, but within a month it had skyrocketed to more than 5 times its original value, with its market capitalization rising to the third-largest position after Bitcoin and Ethereum. This is also in line with our previous report that the altcoin season will explode in the fourth quarter.
(Did your altcoin make the list? Institutions are calling for an altcoin season explosion in the fourth quarter)
For the South Korean people, crypto trading has become a nationwide movement regardless of age or generation (similar to the Taiwan stock market craze in the late 20th century?). The report indicates that many people in their 50s and 60s have also used their retirement funds to buy cryptocurrencies, as they are afraid of missing the opportunity to make a fortune. The wealth creation effect of cryptocurrencies in previous cycles has also written many myths for Korean society, with some people able to retire or buy a house through cryptocurrencies in 2021.
Ms. Kim, a 58-year-old housewife, said: "It feels like a waste to just keep my retirement funds in a bank account, so I tried to invest in Bit and Doge. Although the violent price fluctuations have scared me, so I haven't invested much, but I plan to continue investing in a regular and fixed manner."
According to data obtained by Democratic Party lawmaker An Deok-je from the Financial Supervisory Service, as of the end of September, the number of users aged 60 and above on the two largest cryptocurrency exchanges Upbit and Bithumb reached 775,718, and the total amount of cryptocurrency assets held by these users was 67.609 trillion won, with an average investment of about 8.72 million won per person.
Compared to other age groups, the per capita investment amount of investors aged 60 and above is the highest, higher than those under 20 (980,000 won), 21-30 (2.98 million won), 31-40 (5.26 million won), and 41-50 (7.72 million won).
In addition, the number of older investors who have recently entered the cryptocurrency market has also increased significantly. The number of users aged 60 and above on Upbit and Bithumb has increased by 30.4% (180,834) compared to the end of 2021, and the number of users aged 50 has increased by 22.5% (356,169). In contrast, the number of users aged 20 has decreased by 6.4%, while the number of users aged 30 has increased by 8.3%.
As a supplement, the Telegram channel Crypto Pojangmacha, which focuses on the Korean market, also shared the current situation, stating that the Bithumb Lounge located at 1329-7 Seocho-dong, Seocho-gu, Seoul is a place specifically designed to help with account opening and registration. According to the pictures he shared, the seating area of the Bithumb Lounge is currently full of people waiting to open accounts.
The Korean market is experiencing an asset outflow, attributed to strict regulation
Local media also reported that the Korean market seems to be facing an asset outflow phenomenon. In November 2024, the total monthly trading volume of stablecoins on the top five exchanges in Korea (Upbit, Bithumb, Coinone, Korbit, and GOPAX) was about 16.17 trillion won ($115 billion).
The news attributed this to the Virtual Asset Protection Act that went into effect in July, which restricted the autonomy of listing, prohibited derivative transactions, and limited new services on domestic platforms, including prohibiting corporate accounts and the entry of financial institutions into virtual assets, leading some users to transfer their assets to overseas accounts in the form of stablecoins.
