South Korean individual investors are strongly increasing investment in stocks of companies related to crypto assets, especially stablecoin.
South Korean investors are making a significant shift in investment strategy, strongly increasing the proportion of stocks of companies related to crypto assets while reducing investment in US Big Tech stocks. According to the Korea International Finance Center, the asset proportion of crypto asset companies in foreign stock portfolios has soared from 8.5% in January to 36.5% in June, then maintained at 31.5% in July.
This trend is completely contrary to the declining interest in large US technology corporations. On average during the January-April 2025 period, South Korean investors were buying $1.68 billion of Big Tech stocks monthly, but this figure sharply dropped to $440 million in May, $670 million in June, and only $260 million in July.
BitMine Immersion Technologies, a company specializing in ETH Staking, became the top investment target for South Korean investors in July with $259 million in Capital invested. This special interest reflects the trend of seeking opportunities in companies directly related to stablecoin and decentralized financial services.
Impact from GENIUS Act and US Policies
KCIF believes the wave of interest in crypto asset company stocks is primarily driven by the US Congress passing the GENIUS Act. This law established the legal status of stablecoin, defined a clear regulatory framework, and paved the way for private enterprises to issue stablecoin. These legislative initiatives significantly enhanced confidence in the crypto asset sector and stimulated investment demand in related assets.
Foreign investment activities of South Korean investors have significantly decreased. After net selling for the first time in many months in May 2025, they only net purchased $499 million in July, much lower than the average of $3.8 billion monthly in the early part of the year.
KCIF explains this change by three main factors: the South Korean stock market growing stronger than foreign markets, the won appreciating, and concerns about the impact of US trade policies on the global economy. The Center predicts it is unlikely that South Korean individual investors will soon return to high interest in foreign assets.
To respond to this trend, the South Korean government has announced a comprehensive reform plan for the crypto asset sector in 2025, including launching spot crypto asset ETFs, issuing stablecoin management regulations, and establishing commission fee policy regulations for crypto asset exchanges.
