Crypto Craze: South Korean Investors Ditch US Big Tech for Blockchain-Linked Stocks

Move over, FAANG—Seoul's traders are chasing the next-gen gold rush.

South Korea's investment landscape is flipping the script. While Wall Street obsesses over AI and cloud giants, Korean portfolios are doubling down on crypto-adjacent equities. The trend? Blockchain beats Big Tech—for now.

Local analysts chalk it up to 'Web3 fever.' With tighter crypto regulations stateside, Asian markets see an opening. Domestic players like Upbit parent Dunamu and mining chip maker Woori Technology are soaking up capital that might've gone to Nasdaq darlings.

One fund manager quipped: 'When your local exchange lets you gamble on memecoins before breakfast, why wait for NYSE opening bells?' Ouch.

The playbook's clear: ride the volatility, cash out before regulators catch up. Classic 'Kimchi Premium' mindset—just with stock tickers this time.

KCIF Attributes Rotation To Growing Interest In Stablecoin-Linked Equities

“Investments in virtual assets, particularly in shares related to stablecoins, have expanded following the passage of the US GENIUS Act,” the report said.

The report attributes the rotation to growing interest in stablecoin-lined equities after the US GENIUS Act established a regulatory framework enabling private-sector issuance of stablecoins, singed into law last month by US President Donald Trump.

Notably, South Korean investors have been interested in US equities as the domestic stock market has been languishing. However, the KCIF said, “Since June, the domestic stock market has outperformed overseas markets, while the local currency has strengthened, prompting individual investors to withdraw their investments from foreign markets.”

South Korea’s Political Heavyweights Square Off Over Stablecoin Bills

South Korea’s two largest political parties have taken center stage, unveiling rival stablecoin bills in the country. The prohibition of interest payments on stablecoins has become the most contentious issue in the stablecoin bills.

Lawmakers from both the ruling Democratic Party (DP) and the opposition People Power Party (PPP) introduced legislation in late July 2025 that could pave the way for won-backed stablecoins.

According to local news report published on 28 July 2025, “the ruling party believes that interest payments should be banned to prevent market disruption, while the opposition party believes that it is necessary to increase the competitiveness of won stablecoins.”

Each proposal reflects diverging philosophies on innovation, protection and monetary sovereignty.

Newly elected South Korean President Lee Jae-myung has openly advocated for stablecoins, and his administration has signalled that stablecoins will fill major gaps in the country’s financial landscape.

In his advocacy for stablecoins, Jae-myung has proposed the eligibility of companies with reserves as low as 500M won ($370,000) to be able to issue stablecoins.

: Top 20 Crypto to Buy in August 2025

Key Takeaways

• KCIF flagged lingering concerns around the US tariff scheme’s impact on the real economy, suggesting Korean retail investors are likely to remain cautious on overseas stocks near term.

• Korean retail investors are rotating from US big tech to stablecoin-related stocks abroad after the US GENIUS Act became law, according to KCIF.