Young South Koreans Turn to Cryptocurrencies Amid Dwindling Trust in National Pension System
Survey showed that the majority of South Korean youngsters are highly optimistic about digital assets investment over the national pension system.
South Korea is a major market for cryptocurrency companies, but strict laws have helped local players maintain control over foreign competition. Only a few crypto companies have been allowed to offer services pairing cryptocurrencies with fiat currency in the country over the past few years.
Recently a survey was conducted by Korea Women’s Policy Institute on 1,152 people in July 2023. Respondents were in the age range of 20s and 30s.
Survey reported that nearly 90% of respondents are worried about their pensions because they fear that insurance costs will go up as the population decreases.
In short, people are in tension over how they will be able to handle their financial needs. They raised questions about how the National Pension Service (NPS) will be able to pay pensions in the future.
Survey data showed that 57% of people haven’t made any retirement plans beyond what’s required for the national pension. However, 498 respondents are already exploring options beyond the national pension for their retirement.
Notably, 52% of respondents said they were making “investments in stocks, bonds, funds, and crypto assets.” The majority of these people said that investment in such risky assets is more beneficial than government-backed pension funds or bonds.
As per data records from the local crypto exchanges, between 2020 and 2022, the number of cryptocurrency purchases made by South Korean youngsters aged 20-39 on the country’s largest exchanges nearly tripled. According to financial experts in this country, investing in cryptocurrencies is now considered essential for young South Koreans.
It is worth it to note that only 10% of the population of this country invests in cryptocurrencies but still political leaders use crypto-focused agendas to get the vote support for elections.
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