South Korean Stocks Surge as President Backs Crypto-Backed ₩ Tokens 💰
South Korean equities 📈 have surged following President Lee Jae-myung’s pledge to support crypto assets tied to the ₩ won, sparking major retail interest in digital currency companies 🚀.
The Kospi Composite 🏛️ index is up nearly 30% this year, making South Korea 🇰🇷 the top-performing market in Asia 🌍.
Stocks tied to the Bank of Korea’s digital currency 💵 projects have seen volatility. LG CNS 📊 rose 70% in June 📅, while Kakao Pay 💳 doubled its value.
On the Kosdaq 🏙️, fintech firms are also experiencing big moves. Aton 📉 surged 80%, and mobile game producer ME2ON 🎮 tripled after launching a USD-pegged stablecoin for casinos 🎰.
Retail enthusiasm 🤩 has pushed margin loans to ₩20.5 trillion ($15 billion) 💵, with investors increasing leverage 📊 despite the government’s lack of detailed crypto policies 🏛️.
Expectations 📊 grew with Kim Yong-beom 👔, a digital token advocate, appointed as chief policy adviser. A new bill 📜 proposes allowing companies with ₩500 million in equity to issue stablecoins backed by the won 💱.
South Korea 🇰🇷 is a global crypto hub 🌐, with 20% of its population trading digital assets 📲. In Q1 2025, USD-pegged stablecoins 💵 saw ₩57 trillion in volume, pushing the Bank of Korea to fast-track digital currency plans 🚀.
Banks 🏦, brokerages 📊, and fintech companies 💳 are eager to issue stablecoins 🪙, though the government’s regulatory stance is still unclear ❓. As one fintech exec 💼 said, “We’re excited but cautious, watching where the government sets the line ⚖️.”
However, Bank of Korea Governor Rhee Chang-yong 🏦 raised concerns about non-bank entities issuing won-backed stablecoins 💱, fearing risks to capital flow 💰 and monetary policy 📉.
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