South Korea Dominates Global Markets in H1 With Crypto Push

South Korea has emerged as Asia’s top-performing stock market in the first half of 2025—a rally backed by an aggressive push into digital assets. Under the leadership of newly elected President Lee Jae-myung, the country’s economic policies have seen a dramatic transformation.

According to the Financial Times, Lee’s campaign promises and swift post-election actions, including the appointment of crypto-friendly adviser Kim Yong-beom, have fueled bullish sentiment among investors.

Big Numbers for Investors from South Korea

Stocks tied to the Bank of Korea’s digital currency project have soared. Kakao Pay more than doubled in value this month, while LG CNS surged nearly 70% before some profit-taking cooled the rally.

According to FT, South Korean President Lee Jae-myung's support for won-pegged stablecoin policies has sparked a market frenzy. Related stocks such as Kakao Pay, LG CNS, Aton, and ME2ON surged sharply, with the Kospi index up nearly 30% year-to-date, reaching a four-year high.…

— Wu Blockchain (@WuBlockchain) June 29, 2025

Fintech security firm Aton saw its shares spike 80%, while ME2ON, a mobile game firm with a newly launched dollar-pegged stablecoin, tripled in valuation. This rally has powered the benchmark Kospi Composite Index up by 30% this year, pushing it to its highest level in 4 years.

Margin lending is also booming, with outstanding loans hitting ₩20.5 trillion ($15 billion), indicating a high-risk appetite and intense market participation.

Stablecoin Momentum

Although the government has yet to finalize the details, the introduction of a parliamentary bill, the Digital Asset Basic Act, signals regulatory clarity is soon to follow.

Among the bill’s most disruptive elements is a clause permitting companies with as little as ₩500 million in capital to issue stablecoins, raising both hopes for innovation and concerns about financial stability.

Meanwhile, eight of South Korea’s largest banks, including KB Kookmin, Shinhan, and Woori, have announced plans to launch a won-pegged stablecoin by late 2025 or early 2026.

The initiative, a direct response to the global dominance of US dollar-backed stablecoins (which account for 99% of the $239 billion stablecoin market), marks the first major foray by traditional financial institutions into digital asset issuance.

Though details are still under discussion, the stablecoin is expected to follow a trust-based model backed 1:1 by fiat currency, pending regulatory approval.

The project is being supported by the Korea Financial Telecommunications and Clearings Institute, as well as blockchain organizations such as Open Blockchain and the Decentralized Identity Association.

Crypto’s Growing Role in Personal Finance

A report by the Hana Institute of Finance found that more than a quarter of South Koreans aged 20 to 50 now own digital assets. For many, crypto is not just a speculative venture — it’s become a core component of long-term financial planning.

🇰🇷 LATEST: 27% of South Koreans aged 20–50 hold crypto, and 70% plan to buy more! 📈🪙

Crypto now makes up 14% of their assets, driven by retirement planning and economic pressure.

🚀Stay with NOI Exchange and explore the future of hybrid crypto tradin .#CryptoNews #Korea… pic.twitter.com/nQj99iObwZ

— Noi Exchange (@noiexchange) June 29, 2025

Among investors in their 50s, 78% use crypto to build wealth, and over half are preparing for retirement through digital assets. Interest in structured crypto investments has surged, with regular purchasing habits and mid-term trading growing significantly over the past year.

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