South Korea sees 21% increase in crypto investors in 2024

According to a recent report by the Financial Intelligence Unit (FIU), South Korea's cryptocurrency investor base has grown to 7.78 million, reflecting a 21% increase from the previous year.

This surge translates to an additional 1.33 million investors compared to the second half of 2023, largely driven by a significant rise in Bitcoin's (CRYPTO:BTC) value.

The “Virtual Asset Business Survey” reveals that the average daily transaction volume in South Korea's virtual asset market has increased by 67%, reaching a record 6 trillion won (approximately $4.3 billion), up from 3.6 trillion won ($2.6 billion) in the prior period.

The total market valuation also rose by 27% to 55.3 trillion won, or about $40 billion, in the first half of 2024.

The survey indicates that male investors dominate the crypto landscape, making up 68% (or 5.29 million) of South Korea's crypto users.

Men in their 30s are particularly active, with 1.58 million participants, followed by those in their 40s and younger age groups.

While women represent a smaller segment of the investor base, their participation is also on the rise.

Most South Korean crypto investors hold modest amounts in digital assets, with approximately 67% having assets valued at less than 500,000 won (around $362).

About 10% hold portfolios exceeding 10 million won, translating to slightly more than $7,000, while just 1.3% have more than 100 million won (approximately $72,000).

High-net-worth individuals with virtual assets worth over 1 billion won (about $724,000) account for only 0.03% of the investor base.

Bitcoin remains the most popular asset, held by 37.2% of investors, followed by Ethereum (CRYPTO:ETH) at 11.1%, Ripple (CRYPTO:XRP) at 10.6%, Dogecoin (CRYPTO:DOGE) at 2.8%, and Ethereum Classic (CRYPTO:ETC) at 2.7%.

The report also highlights increased price volatility in South Korea's crypto market, with the Maximum Drawdown (MDD) reaching 70%, compared to 62% in the previous half-year.

The FIU noted that funding into U.S. spot Bitcoin exchange-traded funds (ETFs) and digital asset policies from U.S. presidential candidates have influenced these price movements, urging investors to exercise caution amid heightened fluctuations.