According to a report on June 27 from CoinDesk, the stock of Circle - the company behind the USDC stablecoin - is becoming the top investment choice for individual investors in South Korea. In June alone, small investors in South Korea have net purchased Circle stocks with a total value of up to $450 million, making Circle the most sought-after foreign stock in this market.
The overwhelming interest in Circle is taking place against the backdrop of significant changes in South Korea's financial market related to digital currencies and financial technology. Notably, Circle's current P/E (price-to-earnings) ratio is at 187 times - an extremely high number compared to traditional fintech companies, reflecting strong growth expectations from investors.
Circle's appeal is further boosted by new policies from the South Korean government. Under the new President Lee Jae-myung, the process of legalizing stablecoins pegged to the South Korean won is being accelerated. At the same time, the South Korean National Assembly is considering passing the Framework Act on Digital Assets - a foundational law aimed at establishing a legal framework for digital assets in the country.
If the law is passed, licensed institutions - such as KakaoPay - will be able to issue stablecoins linked to the won. Thanks to this expectation, KakaoPay's stock - a major domestic fintech company in South Korea - has seen an impressive growth of 160% recently.
