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A recent report from the Korean Center for International Finance (KCIF) indicates that South Korean investors in foreign stocks have increasingly shifted their focus towards crypto-related shares, especially stablecoins.
The monthly average of retail Korean investors buying shares in major U.S. tech companies fell from $1.68 billion between January and April to $440 million in May, as reported. This figure further declined to $670 million in June and $260 million in July, according to Yonhap News.
“Investments in digital assets, particularly in shares associated with stablecoins, have grown following the enactment of the U.S. GENIUS Act,” the report reviewed by Cryptonews stated.
U.S. President Trump enacted the GENIUS Act, a significant piece of legislation concerning stablecoins, despite opposition from U.S. lawmakers.
Crypto Stocks Gaining Investor Attention
Local individual investors raised their investments in digital asset stocks from 8.5% in January to 36.5% in June, KCIF noted. However, the share of crypto stocks decreased to 31.4% in July.
“Since June, the domestic stock market has outperformed international markets, while the local currency has appreciated, leading individual investors to withdraw their funds from foreign markets,” the report stated.
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This development follows weeks after South Korea’s Financial Supervisory Service (FSS) advised local asset managers “not to excessively include” crypto stocks such as Coinbase and Strategy in their ETF portfolios.
South Korea FSS has provided verbal guidance to domestic firms, limiting the proportion of crypto companies in ETFs.#SouthKorea #Coinbase #ETFshttps://t.co/cTpwhutu6U
— Cryptonews.com (@cryptonews) July 23, 2025
Reasons Behind the Focus on Stablecoin Stocks
The shift in investment among South Koreans is primarily centered on stablecoins, as noted in the report. This trend is attributed to the country’s significant role in the global crypto sector.
Several South Korean banks are proactively preparing to enter the stablecoin market ahead of regulatory changes. For example, Kakao Bank has revealed intentions to introduce a KRW-backed stablecoin this year.
Moreover, the regulatory environment for stablecoins appears favorable in South Korea, following the recent election of President Lee Jae-myung, who has committed to launching a KRW-pegged coin for business and international trade purposes.
Given the concerns regarding the effects of U.S. tariffs, South Korean retail investors are expected to refrain from actively investing in U.S. stocks at this time, the report concluded.
The post South Korean Overseas Retail Investors Pivot to Stablecoin-Tied Stocks: Report appeared first on Cryptonews.
