South Korean Investors Prefer Crypto-Associated Stocks to US Major Tech: KCIF Report

What has prompted South Korean retail investors to move their overseas investments away from major US technology companies and toward stocks associated with virtual assets? Particularly those linked to stablecoins? A recent report from the Korean Center for International Finance (KCIF), revealed by the Korea Times on 11 August 2025, suggests that this change in trader sentiment is primarily influenced by the US GENIUS Act.

Notably, the proportion of cryptocurrency-related stocks among the top 50 foreign equities purchased by Koreans surged from 8.5% in January to 36.5% in June, before slightly dropping to 31.4% in July of this year.

In addition, the net acquisition of the top seven US tech stocks decreased significantly from a monthly average of $1.68 billion (January-April) to $440 million in May, $670 million in June, and $260 million in July.

South Korean investors are swiftly moving from U.S. big tech stocks to investments in stablecoins, fueled by robust local regulations, the U.S. GENIUS Act, and upcoming KRW-backed stablecoin initiatives like Kakao Bank’s launch in 2023. This shift illustrates an increasing… pic.twitter.com/djPSTCS9ft

— Fama Crypto (@Famacrypt) August 11, 2025

Discover: The 12+ Most Promising Crypto Presales to Consider Now

KCIF Links Shift to Rising Interest in Stablecoin-Connected Stocks

“Investments in virtual assets, particularly in shares associated with stablecoins, have broadened since the enactment of the US GENIUS Act,” the report noted.

The report highlights this shift towards an increased interest in stablecoin-related equities following the implementation of the US GENIUS Act, which created a regulatory framework for the private-sector issuance of stablecoins, signed into law last month by US President Donald Trump.

It is noteworthy that South Korean investors have shown keen interest in US stocks due to a tepid domestic stock market. However, the KCIF stated, “Since June, the local stock crypto market has outperformed foreign markets, alongside a strengthening local currency, causing individual investors to pull their funds from international markets.”

Learn more: South Korea’s Political Giants Debate Stablecoin Legislation

South Korea’s Political Giants Debate Stablecoin Legislation

The two largest political factions in South Korea are taking the spotlight, introducing competing stablecoin legislation in the nation. The ban on interest payments for stablecoins has emerged as the primary point of contention in these bills.

Legislators from both the ruling Democratic Party (DP) and the opposition People Power Party (PPP) submitted proposals in late July 2025 that could facilitate won-backed stablecoins.

According to a local announcement report released on 28 July 2025, “the ruling party insists that interest payments should be prohibited to avert crypto market instability, while the opposition contends that permitting them is essential for enhancing the competitiveness of won stablecoins.”

Each proposal showcases differing ideologies concerning innovation, consumer protection, and monetary sovereignty.

Recently elected South Korean President Lee Jae-myung has publicly supported stablecoins, and his government has indicated that stablecoins will address significant gaps in the nation’s financial system.

In his advocacy for stablecoins, Jae-myung has suggested allowing companies with reserves as low as 500 million won ($370,000) to issue stablecoins.

Discover: Top 20 Cryptocurrencies to Purchase in August 2025

 

The article South Korean Investors Prefer Crypto-Linked Stocks Over US Big Tech: KCIF Report first appeared on 99Bitcoins.