Catenaa, Thursday, August 14, 2025- South Korean retail investors are increasingly turning to stablecoin-related stocks as investment priorities, according to a recent report by the Korean Center for International Finance (KCIF).
The report highlights a sharp decline in South Korean purchases of US big tech shares, dropping from a monthly average of $1.68 billion between January and April to $260 million in July.
Meanwhile, investments in crypto-tied stocks, especially those linked to stablecoins, surged from 8.5% in January to 36.5% in June before slightly declining to 31.4% in July.
This shift followed the enactment of the US GENIUS Act, a stablecoin regulation law signed by President Donald Trump, which has bolstered investor confidence in stablecoin assets.
KCIF attributed part of the trend to recent local market conditions: the domestic stock market has outperformed overseas markets since June, and the South Korean won has strengthened, prompting investors to pull back from foreign stocks.
The report also notes regulatory caution in South Korea. The Financial Supervisory Service recently advised asset managers against overexposure to crypto stocks like Coinbase and Strategy in ETF portfolios.
South Korean banks are preparing to enter the stablecoin sector, with Kakao Bank planning to launch a KRW-backed stablecoin this year.
Newly elected President Lee Jae-myung supports the introduction of a KRW-pegged stablecoin aimed at facilitating business and international trade.
With ongoing concerns about US tariffs, South Korean retail investors are expected to maintain a cautious stance on US equities for now.
