Investor behavior in South Korea is undergoing a significant shift. While the transaction volumes on the country’s leading exchanges, Upbit and Bithumb, have dropped by up to 80% in a year, cryptocurrencies have been replaced by stocks. The KOSPI index, which gained over 70% in 2025, is experiencing one of the strongest rallies in the country’s history, led by artificial intelligence chip giants like Samsung Electronics and SK hynix. Millions of South Korean investors, now focused on stock market screens, are testing their risk appetite with semiconductor stocks.
As Cryptocurrencies Dim, Stocks Shine
Once the heart of global cryptocurrency speculation, South Korea fell silent in 2025. According to data reported by Wu Blockchain, Upbit’s daily transaction volume dropped from $9 billion at the end of 2024 to $1.8 billion in November. Bithumb also lost two-thirds of its liquidity. Data from Dune Analytics shows that deposit transactions, which were 280,000 daily in 2018, have not exceeded 50,000 since 2021. The “Kimchi premium,” as it was once called, has now given way to stagnation.
However, the same group of investors did not remain silent. The KOSPI index has risen over 70% since the beginning of the year, hitting record levels. In October alone, the index recorded its strongest monthly performance since 2001, reaching 17 new peaks in that month alone. Transaction volumes of Samsung and SK hynix account for a quarter of the stock market, with active investor accounts rising from 86.5 million to 95.3 million.
Same Spirit, New Playground
Speculation has become a behavioral trait for South Korean investors. This time, they have concentrated their focus on semiconductor stocks instead of cryptocurrencies. SK hynix and Samsung, meeting the hardware needs of the artificial intelligence era with their superiority in HBM (high bandwidth memory) technology, are at the center of global demand. The government’s reforms aimed at reducing the South Korea Premium, combined with dividend increases and governance incentives, have resulted in a state-backed bull market.
According to Bloomberg, individual investors’ leveraged positions have reached 30% of the total. Margin credits and leveraged ETFs are seeing record demand. Meanwhile, losses in the cryptocurrency market are impacted more deeply by a lack of liquidity. While Bitcoin hovers around the $100,000 mark, many altcoins have depreciated by over 20% in the last month. South Korean investors have redirected their risk appetites towards a more legitimate playing field, namely the stock market.