Crypto Craze Fuels Stock Surge in South Korea

• The federal government plans to permit small corporations to concern stablecoins.
• Following a report buying and selling quantity of 57 trillion received, the Financial institution of Korea is stepping up efforts to launch its official digital received.

Crypto adoption in South Korea has surged to new heights following the election of President Lee Jae-myung. 

The rising enthusiasm within the fast-evolving monetary panorama is driving a rise in traders and pushing inventory costs greater.

Why is the South Korean inventory value rising?

Local media experiences that the ruling celebration has named crypto advocate Kim Yong-beom as coverage chief, signaling robust assist for digital asset innovation.

One main proposal consists of permitting small corporations (with a minimum of 500 million received in fairness) to concern stablecoins. Whereas this transfer excites markets, it has additionally raised issues about systemic threat.

In response, shares tied to stablecoin and digital foreign money initiatives have seen explosive features. Kakao Pay and LG CNS have rallied over 100% and 70%, respectively.

Different crypto-linked shares, like Aton and ME2ON, have additionally surged—rising greater than 80% and almost tripling throughout the identical interval.

Boosted by these rallies, the Kospi index is now up almost 30% year-to-date, making it Asia’s best-performing market within the first half of 2025.

Retail frenzy and margin threat

The continued rally highlights rising curiosity in digital property and is drawing in retail traders.

In line with native media, South Korean retail traders are growing their threat publicity, with margin loans hovering to twenty.5 trillion received ($15 billion).

This spike in margin lending raises the chance of steep losses if the market pulls again—probably affecting the broader monetary system.

The federal government’s pivot towards stablecoins and digital currencies follows a surge in exercise: South Koreans traded 57 trillion received ($42 billion) in U.S. dollar-pegged stablecoins.

In response, the Financial institution of Korea is now fast-tracking the event of its personal official digital received.

Crypto possession at report highs

As well as, a current report from the Hana Institute of Finance revealed that 25% of South Koreans aged 20 to 50 now personal digital property.

Amongst them, folks of their 40s made up the biggest group at 31%, adopted by these of their 30s (28%) and 50s (25%).

Notably, 78% of crypto traders of their 50s stated they make investments to “increase a big sum of cash,” whereas 53% stated they’re making ready for retirement.

These figures replicate rising confidence and powerful curiosity in South Korea’s increasing digital asset market.