Young Koreans turn to cryptocurrency as trust in national pension system declines

The survey found that the majority of young Koreans are more optimistic about investing in digital assets than the national pension system.

South Korea is a major market for cryptocurrency companies, but strict laws have helped domestic companies maintain control over foreign competition. Over the past few years, only a few cryptocurrency companies have been allowed to offer services combining cryptocurrencies and fiat currencies in the country.

Recently, the Korea Women's Policy Institute conducted a survey targeting 1,152 people in July 2023. Respondents were in their 20s and 30s.

The survey found that about 90% of respondents were worried about their pensions, fearing that insurance premiums would rise as the population declines.

Simply put, people are nervous about how they will be able to take care of their financial needs. They raised the question of how to do it. The National Pension Service will be able to pay pensions in the future.

According to the survey results, 57% of people did not plan to retire beyond the national pension standard. However, 498 respondents are already exploring options other than the national pension for retirement.

In particular, 52% of respondents responded that they were “investing in stocks, bonds, funds, and cryptocurrency assets.” Most of them said it was more beneficial to invest in these risky assets than in government-backed pension funds or bonds.

According to data records from domestic cryptocurrency exchanges, the number of cryptocurrency purchases by young Koreans aged 20 to 39 nearly tripled between 2020 and 2022 on the country's largest exchanges. According to domestic financial experts, investing in cryptocurrency is now considered essential for young Koreans.

It is worth noting that only 10% of the country's population invests in cryptocurrencies, but political leaders still use a cryptocurrency-focused agenda to garner voting support for elections.

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