29-6-2025 – In South Korea, a vibrant wave of cryptocurrency enthusiasm has swept through the financial landscape, propelled by the election of President Lee Jae-myung and a bold pro-crypto stance from the ruling party. The appointment of Kim Yong-beom, a fervent advocate for digital assets, as policy chief has ignited optimism, sending ripples of excitement across markets.
Stablecoin proposal redefines financial inclusion
This strategic pivot has not only bolstered investor confidence but also catapulted the Kospi index to a staggering 30% year-to-date surge, crowning it Asia’s top-performing market in the first half of 2025. The government’s ambitious proposal to permit smaller enterprises—those with equity of at least 500 million won—to issue stablecoins has sparked both exhilaration and caution. While the policy promises to unlock innovation in the digital asset space, analysts warn of potential systemic risks lurking beneath the surface.
Stock market soars on crypto enthusiasm
Nevertheless, the market’s response has been electric: stocks linked to stablecoins and cryptocurrencies have soared. Kakao Pay has rocketed by over 100%, LG CNS has climbed more than 70%, while Aton and ME2ON have seen gains exceeding 80% and nearly tripling in value, respectively. South Korea’s retail investors, caught in the crypto fever, are diving deeper into the market, with margin loans swelling to 20.5 trillion won ($15 billion). This surge in borrowing amplifies the potential for significant losses should the market falter, posing a threat to the broader financial system.
Stablecoin usage reaches record highs
Meanwhile, trading activity in U.S. dollar-pegged stablecoins has exploded, with South Koreans exchanging 57 trillion won ($42 billion), prompting the Bank of Korea to accelerate the development of its own digital won. A recent study by the Hana Institute of Finance underscores the scale of crypto adoption: a quarter of South Koreans aged 20 to 50 now hold digital assets.
Those in their 40s lead the charge at 31%, followed closely by individuals in their 30s (28%) and 50s (25%). Notably, 78% of investors in their 50s are drawn to cryptocurrencies as a means to amass significant wealth, while 53% view them as a cornerstone for retirement planning. This growing embrace of digital currencies reflects a profound shift in South Korea’s financial ethos, blending ambition with opportunity in an ever-evolving digital frontier.
