Is South Korea Adopting Bitcoin for Its Elders? Exploring the Bitcoin Pension Fund Proposal

South Korea, known for being one of the fastest adopters of technology in the world, is now contemplating a major move in digital finance: integrating Bitcoin into its national pension system. 

This initiative is being championed by Kim Moon-soo, a presidential candidate from the People Power Party, who proposes allowing the National Pension Service (NPS) to invest directly in Bitcoin.

NPS’s Indirect Exposure to Crypto Assets

While the NPS has not yet made any direct investments in Bitcoin, it has significantly invested in companies closely tied to the crypto sector. In 2024, the NPS acquired nearly $34 million worth of shares in MicroStrategy, a company well-known for its large Bitcoin holdings. 

Additionally, it holds over $45 million in shares of Coinbase. However, the NPS has clarified that these investments are part of a broader market index-tracking strategy rather than a direct foray into crypto assets.

Also Read: South Korea's Bitcoin Transaction Increasest

Kim Moon-soo’s Proposal: A Push Toward Direct Bitcoin Investment

During his presidential campaign, Kim Moon-soo proposed granting the NPS the flexibility to invest directly in Bitcoin. He argues that such a move could help diversify the pension fund’s portfolio and offer protection against inflation. His proposal reflects a growing global trend of financial institutions considering digital assets as part of their long-term investment strategies.

Challenges and Concerns

Despite growing interest, the proposal has sparked concerns among various stakeholders. The Bank of Korea has stated that Bitcoin does not meet the risk management standards set by the International Monetary Fund, particularly regarding liquidity and price stability. Some members of parliament have also stressed the need for a thorough risk assessment of the crypto market’s volatility before making such an important investment decision.

Rising Interest from Both Young and Elderly Investors

Interestingly, the interest in cryptocurrency is not limited to younger generations. A recent survey revealed that 11% of crypto investors in South Korea are in their 60s—surpassing the 8% of investors in their 50s. This suggests that older adults in the country are increasingly viewing crypto as a viable alternative investment option.

Also Read: The Position of RNDR (Render) Coin in the South Korean

Conclusion

The proposal to incorporate Bitcoin into South Korea’s national pension fund marks a paradigm shift in institutional investment. While challenges and concerns remain, the move highlights a growing openness to financial innovation and adaptation to global trends. 

With rising interest from both young and elderly investors, the future of crypto investments in South Korea appears promising.

FAQ

Has South Korea’s National Pension Service invested directly in Bitcoin?

No, not yet. The NPS currently invests in crypto-related companies like MicroStrategy and Coinbase as part of its market index-tracking strategy.

Why is there a push for the NPS to invest directly in Bitcoin?

Advocates, including presidential candidate Kim Moon-soo, believe that direct investment in Bitcoin could enhance portfolio diversification and provide a hedge against inflation.

What are the main concerns about pension funds investing in Bitcoin?

Key concerns include Bitcoin’s price volatility, liquidity risks, and regulatory uncertainties. The Bank of Korea also noted that Bitcoin does not meet international risk management standards.

Are elderly South Koreans interested in crypto investments?

Yes. Surveys show that a higher percentage of crypto investors are in their 60s than in their 50s, indicating growing interest among older generations in digital assets.