South Korean investors abandon crypto, shifting to AI chip stocks.

The crypto market in South Korea has plummeted, with trading on Upbit and Bithumb decreasing by 60-80% compared to last year. Retail trading has almost disappeared, volatility is low, and capital is withdrawing from the market. Money is moving to stocks, with the KOSPI index rising over 70% in 2025, led by AI chip stocks like Samsung and SK Hynix.

The number of stock accounts has surged, margin trading and leveraged ETFs have exploded, indicating that Koreans are still heavily speculating, transitioning from crypto to stocks. When the AI chip craze cools down or when crypto has a new story that is compelling enough, South Korean investors may return.