According to a new report by the Financial Intelligence Unit (FIU), South Korea’s cryptocurrency investor base has surged to 7.78 million. This figure marks a 21% increase from the previous year.

The “Virtual Asset Business Survey” shows domestic crypto investors increased by 1.33 million compared to the second half of 2023, driven largely by an explosive growth in Bitcoin’s value.

Investor Profile and Market Behavior

This growth coincides with a 67% increase in the average daily transaction volume in South Korea’s virtual asset market, which hit a record 6 trillion won ($4.3 billion), up from 3.6 trillion won ($2.6 billion) in the previous period. The market’s total valuation also increased by 27% to 55.3 trillion won, or about $40 billion, in the first half of 2024.

According to the survey, male investors constitute a majority, accounting for 68% (5.29 million) of South Korea’s crypto users. A closer look shows that men in their 30s are particularly active in the market, with 1.58 million participants, followed by those in their 40s and younger age groups. Women, while forming a smaller portion of the investor base, are also increasingly contributing to this growth.

South Korean crypto investors primarily hold modest amounts in digital assets. Approximately 67% of these investors have assets valued at less than 500,000 won ($362). However, 10% hold portfolios exceeding 10 million won, translating to slightly more than $7,000, while a smaller group, representing 1.3% of investors, has more than 100 million won or $72,000. High-net-worth individuals with virtual assets worth over 1 billion won ($724,000) account for just 0.03%.

Bitcoin remains the most widely held asset, with 37.2% of investors favoring it, followed by Ethereum (11.1%), Ripple (10.6%), Dogecoin (2.8%), and Ethereum Classic (2.7%).

South Korean exchanges previously played an important role in global cryptocurrency trading, helping market volumes surge to unprecedented levels. A 2023 report by CCData showed that the count