The South Korean government is promoting a plan to license small businesses to issue stablecoins, while the Bank of Korea is accelerating the implementation of the official digital won after recording a record trading volume of 57 trillion won. The strong development of cryptocurrency in South Korea is boosting positive investment sentiment, contributing to rising stock prices and attracting a large number of new investors into the digital financial market.
The impact of cryptocurrency policies on stock prices in South Korea.
The new government's push under President Lee Jae-myung to promote cryptocurrency-friendly policies is seen as a significant driving force behind the rapid development of the digital financial market. Specifically, the appointment of Kim Yong-beom, a prominent supporter of cryptocurrency, as the head of policy for the ruling party indicates the government's strong interest in innovation in the digital asset sector.
One of the standout proposals is to allow small businesses with equity of 500 million won to issue stablecoins. While this brings growth expectations for the market, the decision has also raised concerns about systemic risks in the short term.
The reaction from the stock market clearly reflects excitement as the stock prices of companies related to stablecoins and digital currencies, such as Kakao Pay and LG CNS, have increased by over 100% and 70% respectively. Other stocks like Aton and ME2ON have also seen strong increases, ranging from 80% to nearly three times during the same period.
This simultaneous growth has contributed to the Kospi index rising nearly 30% since the beginning of the year, making South Korea the best-performing stock market in Asia in the first half of 2025.
The explosion of cryptocurrency trading and leverage risks for individual investors in South Korea.
The rapid growth of the cryptocurrency market in South Korea is also boosting the participation of individual investors. According to local media reports, retail investor margin borrowing has surged to 20.5 trillion won, equivalent to 15 billion USD, indicating an increasing trend of risk acceptance.
This margin increase poses a serious risk of significant losses if the market suddenly adjusts, potentially spreading negative impacts on the overall financial system. The government and the Bank of Korea have been very cautious in balancing the encouragement of innovation and controlling systemic risks.
Along with that, the transaction volume of stablecoins has even reached a record of 57 trillion won (42 billion USD), mainly consisting of USD-pegged stablecoins. In response to this development pressure, the Bank of Korea is accelerating the process of officially introducing the digital won to adapt to the global digital finance trend.
The trend of cryptocurrency ownership among South Koreans has reached a record high.
A recent report from Hana Financial Institute indicates that about 25% of South Koreans aged 20 to 50 own cryptocurrency assets, demonstrating the growing popularity and trust in this digital asset.
The age group of 40 has the highest percentage at 31%, followed by the 30-year-old group at 28% and the 50-year-old group at 25%. This indicates that cryptocurrency is not only embraced by the youth but has also become an investment tool chosen by many generations.
A notable point in the report is that 78% of cryptocurrency investors aged 50 reported that their investment goal is to 'accumulate a large sum of money', and 53% use cryptocurrencies as a tool to prepare for retirement. These figures reflect a growing trust and expectation regarding the long-term growth potential of the cryptocurrency market in South Korea.
Source: https://tintucbitcoin.com/nguyen-nhan-25-nguoi-han-dung-tien-dien-tu/
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