Daniel Walker
South Korea is witnessing a significant rise in crypto enthusiasm across all age groups, driven by President Lee Jae Myung’s pledge to support the development of won-backed stablecoins. The policy shift has not only energized the digital asset sector but also pushed the country’s KOSPI index to the top of Asia’s stock market performance charts in 2025.
A survey conducted by Hana Financial Research Institute revealed that while 27% of Koreans aged 20–59 already hold crypto, an impressive 70% plan to expand their holdings in the coming year. Among current holders, that number jumps to 86%, indicating widespread bullish sentiment.
Middle-Aged Investors Lead the Charge
Contrary to popular belief, it’s not just the younger demographic diving into digital assets. Investors in their 40s make up the largest share of crypto holders, accounting for 31%. The survey also highlighted a notable gender gap, with Korean men nearly twice as likely to own crypto compared to women.
Younger participants cited high-risk, high-return opportunities as their main motivation, while over half of investors in their 50s pointed to retirement planning as their primary reason for investing. Interestingly, market volatility emerged as the top concern for two-thirds of respondents, although only a third expressed worries about security, despite many storing assets on exchange hot wallets.
Stablecoin Momentum Lifts Markets and Companies
The growing appetite for crypto parallels a sharp rally in stocks of companies aiming to launch won-denominated stablecoins. President Lee’s administration has championed legislation that would enable local firms to issue their own stablecoins, a move expected to lower transaction costs, reduce FX risk, and attract global capital.
A proposed bill by the ruling party would require issuers to have a minimum equity capital of 500 million KRW (approx. $367,000)—a contrast to the GENIUS Act in the U.S., which has no capital floor but adds tighter rules for projects exceeding $10 billion in market cap.
According to the Financial Times, the KOSPI index is nearing a four-year high, driven partly by companies participating in the Bank of Korea’s digital currency initiatives. Investor interest isn’t limited to domestic markets either—Circle, the issuer of USDC, has become the top foreign stock pick for South Korean investors, who have invested $443 million post-IPO.
Meanwhile, KakaoPay Corp’s shares have skyrocketed 134% over the past month, buoyed by expectations of favorable crypto regulations under the new government.
