Korean Investors Ditch Bitcoin for AI Chips as Stock Market Soars
South Korean retail investors are shifting from collapsing crypto volumes to fueling a massive, state-backed stock market rally focused on AI semiconductor giants.Summary
South Korea, once the global epicenter of crypto speculation marked by the "Kimchi Premium," is experiencing a major pivot as crypto trading volumes plummet by nearly 80% on exchanges like Upbit and Bithumb by late 2025. The retail energy has migrated to the Korean stock market, driving the KOSPI index up over 70% year-to-date, setting numerous records. This equity boom is heavily concentrated in AI-linked semiconductor firms like Samsung Electronics and SK hynix, which dominate the critical High-Bandwidth Memory (HBM) supply chain. This shift is supported by government reforms aimed at revitalizing domestic markets and reducing the "Korea Discount." While the speculation mirrors past crypto frenzies—evidenced by booming margin lending and increased retail participation in equities—it is now framed patriotically around national champions in the AI sector. This reallocation of risk appetite means global crypto markets have lost a major liquidity anchor, causing volatility to drop worldwide.
(Source：CoinDesk)