Young Koreans Drive $12B Crypto Surge as South Korea Embraces Digital Future
South Korean retail investors have already purchased over $12 billion worth of stocks in US cryptocurrency companies in 2025, according to data compiled by 10x Research. The surge in domestic investor activity highlights growing enthusiasm for digital assets and the perceived long-term potential of the crypto industry, despite regulatory and market volatility. This trend is being driven primarily by younger investors and reflects a broader transformation in the South Korean financial landscape, where crypto trading is increasingly becoming a mainstream investment avenue.
The data reveals that more than 10,000 South Korean investors hold digital assets worth over 1 billion won ($750,000), with the largest concentration of high-net-worth crypto users on Upbit, the country’s largest cryptocurrency exchange. These individuals hold an average of 2.23 billion won in digital assets, with 20-somethings—despite being the smallest demographic group—holding the highest average of 2.69 billion won per person. This indicates a strong generational shift in risk tolerance and investment preferences, with younger investors leading the charge into the crypto space.
The rise in retail trading activity is supported by a rapidly evolving regulatory environment in South Korea. The Lee Jae-myung administration has made digital asset development a national priority, designating it a key task in its five-year government plan. Recent reforms include lifting restrictions on institutional crypto investments and preparing for the approval of the first spot cryptocurrency exchange-traded funds (ETFs). Additionally, the government has reclassified crypto trading firms as “venture companies,” unlocking access to tax benefits and financial incentives that were previously unavailable to the sector.
This regulatory shift is part of a broader effort to position South Korea as a global leader in the digital asset ecosystem. The government is also working on a comprehensive framework for stablecoins, recognizing their role in facilitating real-world economic transactions. Unlike ETFs, which are investment vehicles, stablecoins are being developed as settlement instruments for cross-border payments, tokenized securities, and remittances. The U.S. has already set a regulatory precedent with the Genius Act, which provides a clear legal framework for payment stablecoins and emphasizes the importance of reserve transparency and operational resilience.
The growing involvement of South Korean investors in US crypto equities also reflects a strategic diversification of their portfolios. Retail traders are increasingly viewing US-listed crypto companies as high-growth opportunities, particularly in light of recent developments such as Bullish’s $1.15 billion IPO, which was fully settled in stablecoins. As more institutional and retail capital flows into the sector, South Korea is not only positioning itself as an active participant in the global crypto economy but also as a potential market for new financial products and services tied to digital assets.
However, the surge in trading activity also underscores the need for continued regulatory vigilance. The volatility of crypto markets, combined with the complexities of stablecoin design and oversight, requires a balanced approach that promotes innovation while safeguarding financial stability. As the government moves forward with its digital asset agenda, the focus will likely shift from who regulates to how these assets can be integrated into the broader financial system in a responsible and sustainable manner.
Source: [1] Over 10,000 Koreans Now Hold $750K+ in Crypto as Young ... [2] Korea's Won Stablecoin Debate Is Missing the Point
