South Korean retail investors are witnessing a notable shift in their investment preferences, moving away from major U.S. technology stocks towards cryptocurrencies and related equities.
Changes in Investor Preferences
According to data from the Korean Centre for International Finance (KCIF), virtual asset-related stocks comprised 36.5% of the top 50 net bought overseas shares by local individuals in June, a significant jump from just 8.5% in January. This share dipped slightly to 31.4% in July but remains significantly higher than early year levels.
Impact of New Legislation
The surge in demand for crypto equities follows the passage of the U.S. GENIUS Act, signed into law by President Donald Trump on July 18, establishing clear regulatory standards for stablecoins and allowing private companies to issue them.
Launch of Korean Stablecoin
South Korea has launched its first Korean won-backed stablecoin, KRWIN, in a limited pilot phase. Developed by fanC in partnership with financial software provider Initech, KRWIN is pegged 1:1 to the won, marking a significant development in digital assets.
The trend of South Korean retail investors shifting their focus underscores a growing appetite for digital assets and stablecoins, indicating potential changes in long-term investment strategies.
