South Korea is currently experiencing a surge in interest for digital currency, particularly among its youth, known as the “N-Po generation.” This generation, aged 20-39, is facing economic challenges and societal pressures but sees potential in the booming digital market and the promises of Web3 technology.
The economic struggles of the N-Po generation began in 1997 when South Korea faced a severe currency crisis that led to a significant depreciation of the Korean won and required a bailout from the International Monetary Fund (IMF). Subsequent restructuring attracted increased foreign investment, which resulted in the acquisition of vital infrastructure companies by foreign entities. This heavy reliance on foreign capital made the economy fragile, with companies prioritizing corporate profits over national interests, exacerbating inflationary pressures.
Rising housing prices, fueled by Chinese investment, have also worsened the housing shortage, particularly in cities like Seoul. This has made it difficult for young Koreans to afford homeownership, adding to their economic struggles.
The term “N-Po generation” comes from the concept of abandonment, or “pogi,” which reflects the economic struggles that young Koreans face. These young people often forsake milestones like love, marriage, childbirth, homeownership, and social activities. Over time, the term has expanded to encompass different levels of sacrifice, such as giving up job prospects, homeownership, relationships, and dreams.
The fertility rate in South Korea has also plummeted below 1, exacerbating societal disparities. The top 3% of the population is considered “elite,” while the remaining 97% of the N-Po generation faces limited opportunities and a sense of hierarchy.
Despite these challenges, South Korea’s Web3 market is experiencing remarkable growth. The market has over 200,000 active users, with approximately 15% engaging in trading on centralized exchanges. This strong purchasing power has even led to a “Kimchi premium” for stocks listed on Korean digital currency exchanges.
In a society plagued by inflation and soaring housing costs, achieving basic necessities becomes increasingly challenging on fixed incomes alone. The N-Po generation seeks high-risk assets as a way to break through adversity and achieve financial success.
The South Korean government has shifted its approach to the digital currency market and now embraces its potential economic benefits. Initiatives such as the pilot launch of a central bank digital currency (CBDC) and efforts to establish legislation for security token offerings (STOs) demonstrate a commitment to creating a regulatory framework for asset tokenization.
South Korea is known as the “netizen” kingdom, with a significant internet culture. Young individuals spend more time in digital realms than in reality, and earning money through conventional means becomes challenging. This has led to a surge in cryptocurrency gambling, particularly in altcoins and meme coins. South Koreans favor altcoin investments over Bitcoin and Ether.
Opinion leaders hold significant influence, despite skepticism towards mainstream media among the youth. KOL Telegram communities play a pivotal role in shaping consumer behavior.
While there may be a pessimistic tone in South Korea, crypto enthusiasts are still fervently searching for opportunities in the midst of societal darkness.