40% of South Korean University Students Report Investing in Cryptocurrency
According to a recent survey, conducted by the investment banking and brokerage service provider Korea Investment and Securities, it appears that South Korean university students are increasingly turning to cryptoassets such as Bitcoin (BTC), with 40% of them stating that they invest in tokens along with overseas stocks.
The survey, which took place between June 11 and June 22 and involved over 400 South Korean university students, revealed interesting findings about the investment behaviors of the participants. A significant 72% of the respondents mentioned that they were actively investing in overseas stocks, with a majority indicating that they had purchased shares in firms listed on the New York Stock Exchange (NYSE). Additionally, 89% of these respondents expressed their intentions to further expand their portfolios on the NYSE in the near future.
Interestingly, even those students who did not currently have investments in NYSE stocks expressed a desire to do so, with 87% stating that they were planning to initiate such investments within the next 12 months. Furthermore, 40% of the surveyed students shared that they were involved in both stock investments and cryptoasset investments.
Among those students investing in cryptoassets, over half cited the high expected rate of return as the primary reason behind their decision, while one in five believed in the potential for these coins to gain significant value in the future. In contrast, only a small percentage of respondents expressed interest in investing in other Asian stock markets, with 5% investing in Japan and 3% in China.
The survey results point towards a lack of trust among young South Koreans in the domestic stock market, with many viewing overseas stocks as offering lower volatility and greater stability. The data also suggests a growing trend of more college students engaging in investment activities, with an increasing number opting for larger investment sums.
Notably, some students acknowledged going into debt to finance their investments in stocks and cryptoassets. The survey also highlighted that students diversified their investment portfolios by including financial products such as principal-guaranteed assets, exchange-traded funds (ETFs), funds, and bonds.
Overall, the survey underscores the skepticism that many young South Koreans harbor towards traditional financial systems like the pension service and savings accounts, as well as the domestic stock market. A previous survey targeting individuals aged 20-39 revealed that a significant majority lack trust in state-provided pensions, with over half of the respondents choosing to invest in stocks, bonds, funds, and cryptoassets instead.
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