### South Korean Students Turn to Cryptocurrency Amid Rising Debt
According to a recent report by South Korean media outlet Delighti, a survey by Korea Investment & Securities (KIS) reveals that nearly half of South Korea’s university students are investing in cryptocurrencies as a lifeline to tackle escalating debt and financial challenges. This surprising trend highlights the severity of the student debt crisis, driving young people to adopt innovative and high-risk financial strategies to achieve economic stability and independence.
The survey indicates that 40% of the respondents have invested in cryptocurrencies like Bitcoin, with a primary focus on companies listed on the New York Stock Exchange. Moreover, 89% expressed plans to diversify their investment portfolios soon. This reflects a lack of confidence among South Korean youth in the local stock market, which many perceive as more volatile.
The research also shows a gradual improvement in financial literacy among students, with an increasing number of young people starting to invest early. Over half of the respondents stated they began investing within the last three years, with many investing significant amounts exceeding $7,180.
### Debt and Economic Pressure: A Real-Life “Squid Game”
In the popular TV series “Squid Game,” fictional participants face severe consequences due to massive debts, forcing them into dangerous games for a chance to win a fortune to pay off their debts. Similarly, South Korean youths face analogous economic pressures in reality, with many resorting to extreme measures to manage their financial responsibilities.
Rising economic pressures, particularly soaring housing prices and living costs, have led many young South Koreans to shoulder substantial debt. These pressures are exacerbated by the Bank of Korea’s monetary tightening policies. Young people frequently rely on educational loans to cover tuition and living expenses, with educational debt growing faster than other types of consumer debt.
Recent survey data indicates that in 2021, over one-fifth of households aged 19 to 39 had a debt-to-income ratio exceeding 300%, up from just 8% in 2012. This figure is expected to rise further by 2024. This financial strain disproportionately affects dual-income families, families with children, and low-income individuals in the greater Seoul area, underscoring the region’s growing socioeconomic divide.
Additionally, South Korea’s severe population aging problem leaves many young people skeptical about pension services, savings accounts, and the domestic stock market. In April, a survey of 20- to 39-year-olds found that over three-quarters of this age group “do not trust” the government-issued pension system.
### The Future of Cryptocurrency in South Korea
Facing an escalating debt crisis, more South Korean youths are turning to cryptocurrency investments, drawn by the potential for high returns to improve their financial situations. The allure of high returns remains a primary motivator for choosing cryptocurrencies.
The future of South Korea’s cryptocurrency market appears promising but fraught with uncertainty. Despite government efforts to increase transparency and security through policy changes, the allure of high returns will likely continue to attract debt-laden students.
South Korea plans to introduce a system focused on cryptocurrency asset management by 2025 to combat tax evasion and monitor illegal transactions. Ongoing policy changes aim to regulate cryptocurrency exchanges and ensure investor protection, potentially influencing the future popularity and viability of cryptocurrencies as an investment option in the country.
Amid severe economic pressures, the surge in interest in cryptocurrencies among South Korean students reflects the gravity of the student debt crisis. As young people explore the cryptocurrency market, emphasizing responsible investment practices and financial education will be crucial to securing their financial futures in the ever-evolving cryptocurrency industry.
This article is republished in collaboration with Crypto City.
