boom driven by the youth economic crisis

The crypto phenomenon in South Korea has reached impressive numbers, surpassing 16 million registered users on exchange platforms.

This figure represents over 30% of the total population of the country and has seen a significant acceleration after President Trump’s electoral victory in the previous November.

However, behind this growth lies a less positive reality: the spread of crypto does not stem from genuine enthusiasm for blockchain technology, but from a profound economic desperation, especially among the younger generations.

During the recent German Blockchain Week, Eli Ilha Yune, chief product officer of the startup Anzaetek, emphasized that, contrary to the Western world, in South Korea the main motivation for approaching digital assets is not a trust in the potential of Web3 but an urgent need to seek rapid and risky financial solutions.

The rise of crypto in South Korea between growth and despair

The growing interest in crypto among young South Koreans is set within a complex economic context. The 2025 Korea Wealth Report highlights how the country’s wealthy young people hold three times more crypto compared to the age group over 45.

Furthermore, 34% of high-net-worth individuals already own digital assets. Despite these figures, according to Yune, this trend does not stem from a widespread belief in the value of crypto, but rather from the lack of other opportunities.

The youth unemployment rate (age group 15-29) in South Korea reached 6.6% in May, more than double the general rate of 2.7%.

This gap highlights a structural problem that drives young people to quickly seek alternative sources of income, often moving towards crypto trading.

In the landscape of traditional investments, stocks are seen as a first option, but Yune explains that the returns on securities are considered insufficient.

The real estate market is then practically inaccessible: housing prices in Seoul have doubled in the last five years, exceeding one billion won (about 689,000 dollars), while the price-to-income ratio has reached the value of 15.2.

For young workers or students, purchasing or even renting is too burdensome.

In this situation, crypto appears as the only viable path. As explained by Yune: “They can no longer buy houses, nor afford excessively high rents.

Therefore, the only option left is cryptocurrency.”

However, it emphasizes that this choice often does not stem from an interest in the underlying technology or its infrastructure, of which many are not even fully aware.

Policies and digital future: the role of the South Korean government

In parallel with this boom, the government of President Lee Jae-myung has initiated a path of relocation of digital assets within the national financial system.

The launched initiatives aim to institutionally integrate crypto and digital assets, carrying forward a bold and structured vision of regulation and development.

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Among the most significant measures is the support for the issuance of stablecoin domestically, meaning digital assets pegged to the value of the won, the local currency.

In fact, the governor of the central bank has expressed openness to the possibility that South Korea might adopt a won-based stablecoin. This project aims to strengthen control over digital resources and to offer safer and more stable tools to the entire market.

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Despite the economic difficulties, the push towards crypto in South Korea offers a broad reflection on the transformations underway.

The context emerges as a unique example, where the growth of decentralized finance is less a symbol of innovation and more a signal of adaptation to new forms of precariousness.

The strong institutional commitment to regulate and integrate digital assets into the traditional system invites consideration of how, in the future, the collaboration between technology and policy can improve the security of investors and expand opportunities for new generations.

Consequently, the way these policies are developed will have a crucial impact on the national and global crypto market.

A future between social challenges and technological opportunities

The crypto boom in South Korea reflects a complex reality, in which digital finance becomes a refuge for young people dealing with unemployment and housing difficulties.

On one hand, a social crisis is evident, while on the other, a scenario of technological modernization is opening up, promoted by the government and financial institutions.

The crypto ecosystem is thus at a crossroads: it could consolidate itself as a strategic asset within the national economic system, or it might risk remaining an emergency solution for many people in difficulty.

Investors and policy makers are called to act with balance to transform this momentum into a sustainable opportunity.

Ultimately, monitoring the evolution of the relationship between young people, the traditional economy, and crypto in South Korea is essential to understand how the global landscape of digital assets is evolving and which paths can ensure an economically inclusive and technologically advanced future.