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Influenced by cryptocurrency investment and expectations of policy changes, the South Korean stock market recorded a gain of nearly 30% in the first half of the year, becoming the standout performer in the Asia-Pacific region.
The Financial Times analyzed that market attention to a Korean won-based stablecoin and the new government's open attitude toward digital assets have both had significant positive impacts on the stock market trend.
After South Korean President Lee Jae-myung took office, he publicly expressed support for issuing a won-based stablecoin and plans to allocate the National Pension Fund to crypto assets. In addition, the ruling Democratic Party proposed the "Digital Asset Basic Act" at the beginning of the month, planning to allow local enterprises to issue stablecoins, provided that the company has capital exceeding 500 million won (1.5569 million MYR), further boosting positive market sentiment.
Analysts point out that the won stablecoin frenzy has encouraged retail investors to actively participate, resulting in a 27% year-to-date increase in the KOSPI, reaching a nearly four-year high and making it one of the brightest performers among major Asia-Pacific markets. During the same period, the Nikkei rose only 2.2%, while Taiwan stocks fell slightly by 1%.
South Korea is one of the world's most enthusiastic markets for cryptocurrencies, with about 20% of the population involved in digital assets. According to MK Bank statistics, 27% of people aged 20 to 50 hold cryptocurrencies, and 70% indicated their intention to further increase their investments. Another report shows that the market rebound has stimulated investors to increase leverage, with margin loan balances in the South Korean market reaching as much as 20.5 trillion won (6.3832 billion MYR), clearly highlighting the rise in risk appetite.
Currently, 99% of global stablecoins are pegged to the US dollar, but South Korea's traditional financial institutions are also actively investing in this field, planning to launch a won-based stablecoin by 2026 to counter the dominance of the US dollar. Major banks such as KB Kookmin Bank and Shinhan Bank, among eight large institutions, have already submitted related plans and are awaiting government approval. However, the Bank of Korea remains highly attentive to potential risks, with Governor Rhee Chang-yong stating that stablecoins issued by non-bank entities could weaken the effectiveness of monetary policy and exacerbate the risk of capital outflow.
The Financial Times analyzed that market attention to a Korean won-based stablecoin and the new government's open attitude toward digital assets have both had significant positive impacts on the stock market trend.
After South Korean President Lee Jae-myung took office, he publicly expressed support for issuing a won-based stablecoin and plans to allocate the National Pension Fund to crypto assets. In addition, the ruling Democratic Party proposed the "Digital Asset Basic Act" at the beginning of the month, planning to allow local enterprises to issue stablecoins, provided that the company has capital exceeding 500 million won (1.5569 million MYR), further boosting positive market sentiment.
Analysts point out that the won stablecoin frenzy has encouraged retail investors to actively participate, resulting in a 27% year-to-date increase in the KOSPI, reaching a nearly four-year high and making it one of the brightest performers among major Asia-Pacific markets. During the same period, the Nikkei rose only 2.2%, while Taiwan stocks fell slightly by 1%.
South Korea is one of the world's most enthusiastic markets for cryptocurrencies, with about 20% of the population involved in digital assets. According to MK Bank statistics, 27% of people aged 20 to 50 hold cryptocurrencies, and 70% indicated their intention to further increase their investments. Another report shows that the market rebound has stimulated investors to increase leverage, with margin loan balances in the South Korean market reaching as much as 20.5 trillion won (6.3832 billion MYR), clearly highlighting the rise in risk appetite.
Currently, 99% of global stablecoins are pegged to the US dollar, but South Korea's traditional financial institutions are also actively investing in this field, planning to launch a won-based stablecoin by 2026 to counter the dominance of the US dollar. Major banks such as KB Kookmin Bank and Shinhan Bank, among eight large institutions, have already submitted related plans and are awaiting government approval. However, the Bank of Korea remains highly attentive to potential risks, with Governor Rhee Chang-yong stating that stablecoins issued by non-bank entities could weaken the effectiveness of monetary policy and exacerbate the risk of capital outflow.