South Korean Investors Dump U.S. Tech, Bet Big on Stablecoin Stocks

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South Korean retail investors are changing their overseas investment habits, moving away from traditional U.S. big tech stocks and increasing their interest in crypto-related shares, especially those tied to stablecoins. This shift reflects growing confidence in stablecoins and changing crypto regulations in South Korea and the U.S.

Decline in U.S. Big Tech Stock Purchases

Between January and April, South Korean retail investors were buying an average of $1.68 billion monthly in U.S. big tech shares. However, this number dropped sharply to just $440 million in May, with further declines to $670 million in June and $260 million in July, as per the local media reports . This trend indicates a clear pullback from conventional overseas tech stocks.

Rise of Stablecoin-Related Investments

The Korean Center for International Finance (KCIF) reports that investments in digital asset stocks have surged, especially in shares connected to stablecoins. This growth followed the passage of the U.S. GENIUS Act , a landmark stablecoin regulation signed into law by President Trump, which has encouraged investor confidence despite initial opposition from lawmakers.

Concurrently, investments in digital asset stocks have surged. The proportion of crypto-related stocks among the top 50 net purchases by individual investors increased from 8.5% in January to 36.5% in June, before slightly declining to 31.4% in July. Notably, Circle Internet, the issuer of the USDC stablecoin, topped the list of net purchases in June.

Local Market Dynamics and Regulatory Influence

The decline in foreign investments is partly due to stronger performance in South Korea’s domestic stock market and a strengthening local currency. These factors have encouraged investors to pull back from overseas markets.

Adding to this, South Korea’s Financial Supervisory Service (FSS) recently advised local asset managers to limit crypto companies’ weight in ETFs, aiming to control risks associated with volatile crypto assets.

Why Stablecoins Are Gaining Ground

Stablecoins have become the main focus for South Korean investors because the country is a global leader in crypto innovation. Several Korean banks are preparing to enter the stablecoin market, anticipating upcoming regulatory reforms. Kakao Bank, for example, plans to launch a KRW-backed stablecoin within the year.

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Moving on, President Lee Jae-myung’s administration has also pledged to introduce a Korean won-pegged stablecoin to facilitate business and international trade, providing clearer regulatory guidance.

With ongoing concerns about U.S. tariffs and market uncertainties , South Korean retail investors are cautious about U.S. stocks and are increasingly favoring stablecoin-linked assets as safer, regulated crypto investments for the near future.

Moreover, a new service launched on August 1 is also creating ground for Stablecoin adoption in South Korea. It lets tourists convert USDT stablecoins into Korean won instantly using DaWinKS ATMs, available in 17 countries. This practical step makes crypto easier to use daily and challenges strict local regulations, showing how stablecoins are becoming both an investment and a real-world payment tool in South Korea.

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FAQs

Why are South Korean investors shifting to crypto stocks?

Korean retail investors are moving from US big tech (down to $260M in July) to stablecoin-linked stocks (36.5% of top 50 buys in June) after the US GENIUS Act boosted regulatory clarity.

Which crypto stocks are Koreans buying most?

Circle Internet (USDC issuer) topped June purchases, with crypto stocks rising from 8.5% to 31.4% of retail portfolios amid stablecoin adoption.

What’s driving stablecoin adoption in Korea?

Real-world utility (USDT ATMs in 17 countries) and government plans for a won-pegged stablecoin are accelerating adoption beyond speculative trading.

Could this trend impact US crypto markets?

Yes – Korean retail’s pivot to stablecoin stocks (e.g., +281% in Circle shares) signals growing global demand for regulated crypto assets post-GENIUS Act.