Individual Korean investors are shifting from large tech stocks to stablecoin-related stocks, demonstrating increasing confidence in this stable cryptocurrency.
This new investment trend reflects the impact of cryptocurrency regulatory policies in the United States and South Korea, along with the strong development of the domestic stablecoin market.
- Sharp decrease in US tech stock purchases by individual Korean investors from May 2025.
- Investment in stablecoin-related stocks surged due to increased legislation and trust.
- Domestic market and risk control regulations adjust overseas investment behavior.
Why have US tech stock purchases significantly decreased?
Data from January to July 2025 shows the average monthly investment in large US tech stocks by individual Korean investors dropped from $1.68 billion to just $260 million in July. This represents a clear reversal in overseas investment behavior.
The main reason is the consolidation of the domestic market and a stronger won, causing investors to prioritize domestic asset retention. Additionally, the trend change stems from risk concerns and competition among new investment options.
This decline was confirmed through local media reports and financial institution statistics, reflecting the cautious sentiment of individual investors.
Why has investment in stablecoin-related stocks increased?
The Korea International Financial Center (KCIF) reported that investment in stablecoin-related stocks has significantly increased, especially after the US enacted the GENIUS Act on stablecoin management. This act built trust and stability for investors despite initial divergent opinions.
The proportion of cryptocurrency stocks in net purchase portfolios increased from 8.5% early in the year to 36.5% in June and remained high at 31.4% in July. Circle Internet, the issuer of USDC, was the most purchased stock in June.
Enhanced awareness and clear policies in the US have boosted confidence and expanded stablecoin attractiveness in the Korean market.
Stablecoin is becoming a priority choice because it combines stability and real-world transaction application potential.
Korean Financial Expert, 2025
How do domestic factors and regulations influence this trend?
The flourishing of the Korean stock market and the won's appreciation have reduced overseas investment demand. This is the primary reason contributing to decreased US tech stock purchases.
Moreover, the Korean Financial Supervisory Service (FSS) has advised investment funds to consider limiting cryptocurrency stock proportions in ETFs to minimize excessive volatility risks.
This policy demonstrates efforts to strictly manage the cryptocurrency market while protecting individual investor interests and maintaining domestic financial stability.
Why are stablecoins increasingly popular in South Korea?
South Korea leads global cryptocurrency innovation, with many banks preparing to launch won-backed stablecoins. For example, Kakao Bank plans to issue a KRW-backed stablecoin this year.
President Lee Jae-myung's administration has also committed to deploying a won-pegged stablecoin to support trade and provide a clearer legal framework.
Amid concerns about import taxes and US market risks, individual Korean investors are trending towards stablecoins as a safer investment channel with prospects of strict regulation.
On August 1st, a USDT to won conversion service at DaWinKS ATMs in 17 countries was launched, helping to promote stablecoin use in actual payments and expanding stablecoin influence in daily life.
Developing stablecoin-to-fiat conversion services not only expands applications but also minimizes barriers from restrictive regulations.
Korean Cryptocurrency Market Analyst, 2025
Frequently Asked Questions
Why are Korean investors reducing US tech stock purchases?
Mainly due to a thriving domestic market and a stronger won, causing investors to prioritize domestic asset retention to reduce foreign exchange volatility risks.
What attracts Korean investors to stablecoins?
Stablecoins are trusted for their stable value, payment application potential, and support from new regulatory laws.
What policy affects cryptocurrency-related investment funds in South Korea?
The Financial Supervisory Service (FSS) has advised limiting cryptocurrency stock proportions in ETFs to control market risks.
What are Korean banks doing with stablecoins?
Many banks are preparing to issue won-backed stablecoins, aiming to expand transactions and establish clearer regulations.
What is the significance of the USDT to won ATM conversion service?
It helps increase cryptocurrency usability in daily payments while reducing current legal barriers.
