Korean individual investors are strongly increasing their investments in stocks of companies related to cryptocurrency, particularly stablecoins.
Korean individual investors are making a significant shift in their investment strategy, strongly increasing the proportion of stocks of companies related to cryptocurrency while reducing investments in U.S. Big Tech stocks. According to the Korea International Financial Center, the proportion of assets of cryptocurrency companies in the foreign stock portfolio skyrocketed from 8.5% in January to 36.5% in June, and then maintained at 31.5% in July.
This trend is in stark contrast to the declining interest in major U.S. technology corporations. On average, from January to April 2025, Korean investors net bought 1.68 billion USD worth of Big Tech stocks each month, but this figure plummeted to 440 million USD in May, 670 million USD in June, and only 260 million USD in July.
BitMine Immersion Technologies, a company specializing in Ethereum staking, became the top investment target for Korean investors in July with 259 million USD invested. This special interest reflects the trend of seeking opportunities in companies directly related to stablecoins and decentralized financial services.
The impact of the GENIUS Act and U.S. policy
KCIF believes that the wave of interest in stocks of cryptocurrency asset companies is primarily driven by the U.S. Congress passing the GENIUS Act. This act has established the legal status of stablecoins, defined a clear regulatory framework, and paved the way for private enterprises to issue stablecoins. These legislative initiatives have significantly enhanced confidence in the cryptocurrency sector and stimulated demand for related assets.
The foreign investment activity of Korean investors has generally decreased significantly. After a net sale for the first time in many months in May 2025, they only made a net purchase of 499 million USD in July, much lower than the average of 3.8 billion USD per month 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 appreciation of the won, and concerns about the impact of U.S. tariff policies on the global economy. The center predicts that it is unlikely for Korean individual investors to soon return to their previous high interest levels in foreign assets.
To respond to this trend, the South Korean government has announced a comprehensive reform plan for the cryptocurrency sector in 2025, including the launch of spot cryptocurrency ETFs, issuing regulations for stablecoin management, and setting commission fee policies for cryptocurrency exchanges.