South Korean Investors Pivot from US Big Tech to Crypto-Linked Stocks Amid Regulatory Shifts

South Korea's retail investors are dramatically reallocating their overseas portfolios, shifting focus from US big tech stocks to VIRTUAL asset-related equities—particularly those tied to stablecoins. The Korean Center for International Finance (KCIF) reports this trend surged following the US GENIUS Act, with crypto-linked stocks jumping from 8.5% to 36.5% of top net-bought overseas holdings between January and June 2025.

Net purchases of the 'Magnificent Seven' US tech stocks plummeted from a monthly average of $1.68 billion early this year to just $260 million by July. Kakao Bank's planned KRW-backed stablecoin launch and tightening local regulations appear to be accelerating the rotation. 'Investments in virtual assets, especially stablecoin-linked shares, have expanded post-GENIUS Act,' the KCIF noted, highlighting how policy moves are reshaping global capital flows.