"Bought a house with crypto"...10.3 billion won in cryptocurrency funds poured in by people in their 30s

▲ “Bought a house with crypto”…10.3 billion won in cryptocurrency funds poured in by people in their 30s/AI-generated image

Official statistics have for the first time revealed evidence that investors in their 30s in Korea have begun moving their cryptocurrency (virtual currency, coin) profits into the real estate market. The aggregated results of the newly introduced ‘virtual currency sale proceeds’ reporting item for this year show that individuals in their 30s overwhelmingly used coin profits as funds for housing purchases.

According to data submitted by Rep. Kim Jong-yang's office (People Power Party), a member of the National Assembly's Land, Infrastructure and Transport Committee, to the Ministry of Land, Infrastructure and Transport on May 10, a total of 324 cases listed virtual currency sale proceeds in their housing acquisition fund procurement plans from February 10 to March 31 this year. Among these, 229 individuals were in their 30s, accounting for 70.7% of the total.

The total amount of virtual currency sale proceeds used by people in their 30s for housing purchases was 10.31 billion won, the highest among all age groups. This was followed by 5.495 billion won for those in their 40s, 1.185 billion won for those in their 20s, 1.072 billion won for those in their 50s, and 501 million won for those aged 60 or older. This aggregation is the first data released since the enforcement rule revision in February this year. Going forward, the source of cryptocurrency sale funds and the details of conversion to Korean won must also be reported.

However, the proportion of coins in the actual fund procurement structure was still limited. The proportion of virtual currency sale proceeds within the total housing acquisition funds for those in their 30s remained at around 0.1%. Among self-funds, proceeds from the disposal of existing real estate accounted for the largest share at 18.7%, followed by financial institution deposits at 14.6%, gifts/inheritance at 6.9%, and stock/bond sale proceeds at 4.3%.

The market also predicts that if another cryptocurrency bull market fully commences in the future, the trend of 'coin profits → real estate purchases' could strengthen, especially among younger generations. In particular, with ongoing loan regulations, there is an analysis that an increasing number of individual investors who have secured cash liquidity may move their profits from coins and stocks into real assets.

Kim In-man, director of the Kim In-man Real Estate Economic Research Institute, diagnosed, "It appears to reflect the impact of some funds moving to the stock market due to the recent bullish trend in domestic and international stock markets," adding, "As those in their 20s and 30s have a high proportion of coin and stock investments, there is a high possibility that future profits will flow into the real estate market." He further added, "In an environment where loans are not easy, the trend of disposing of cryptocurrencies or stocks to secure housing funds may gradually expand."

*Disclaimer: This article is for investment reference only and is not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*