South Korea’s inventory market has surged on a wave of enthusiasm for won-pegged digital property after newly elected President Lee Jae-myung pledged assist for stablecoins backed by the nationwide foreign money.
Key Takeaways:
- South Korea’s Kospi index surged almost 30% YTD over the previous week.
- The rally is pushed by President Lee’s pledge to assist won-backed stablecoins.
- Shares like Kakao Pay and ME2ON soared as retail traders piled into crypto-linked shares.
Shares of corporations linked to the Financial institution of Korea’s digital foreign money initiative, together with Kakao Pay and LG CNS, have soared since Lee’s announcement, with Kakao Pay greater than doubling in worth this month and LG CNS climbing almost 70% earlier than pulling again barely, FT reported.
On the Kosdaq junior market, Aton, a fintech safety agency, noticed its shares leap 80%, whereas cellular recreation developer ME2ON tripled after its subsidiary launched a dollar-pegged stablecoin for on line casino platforms.
Kospi Inventory Soars 30% YTD, Topped Korea’s Greatest-Performing Market in H1 2025
The rally has pushed South Korea’s Composite Inventory Worth Index or KOSPI up nearly 30% this yr, lifting it to close four-year highs and making it Asia’s top-performing marketplace for the primary half of 2025.
Retail traders have flocked to the rally, with excellent margin loans swelling to Won20.5 trillion ($15 billion), knowledge from the Korea Monetary Funding Affiliation reveals.
Regardless of the euphoria, the federal government has but to disclose particular insurance policies for won-based stablecoins, leaving the market to commerce on expectations fueled by President Lee’s appointment of Kim Yong-beom, a well known digital asset advocate, as his chief coverage adviser.
Momentum has been additional supported by a invoice launched by the ruling get together this month, proposing to permit corporations with as little as Won500 million in fairness to concern won-based stablecoins.
Critics warn this might expose the monetary system to undercapitalized gamers and heighten systemic dangers.
Kakao Pay, Kakao Leisure, Kakao Corp.
All holding $KAIA. All energetic in @KaiaChain governance.
Now: a KRW stablecoin trademark filed by Kakao Pay.
Coincidence? pic.twitter.com/5AybAx0zIJ— Paulo (@auloap) June 24, 2025
South Korea, house to one of many world’s most energetic crypto markets, noticed buying and selling in dollar-pegged stablecoins hit Won57 trillion within the first quarter alone, rising strain on the Financial institution of Korea to speed up its personal digital foreign money rollout.
Banks, brokerages, and fintech companies are desperate to enter the stablecoin area however stay cautious of forthcoming rules.
Financial institution of Korea governor Rhee Chang-yong has voiced considerations about stablecoins issued by non-bank entities, highlighting dangers to capital flows and financial coverage.
The central financial institution plans to seek the advice of main lenders on a second pilot for its digital foreign money.
Korea’s FSC Eyes Spot Crypto ETFs
As reported, South Korea’s Monetary Companies Fee (FSC) has offered a roadmap to the Presidential Committee on Coverage Planning proposing the approval of spot crypto ETFs.
The transfer got here after President Lee Jae-myung’s marketing campaign promise to modernize digital asset guidelines and enhance alternatives for youthful traders.
The plan outlines implementation measures for spot crypto ETFs and regulatory frameworks for won-based stablecoins within the second half of 2025.
Traditionally, the FSC blocked crypto ETFs over volatility and monetary danger considerations, sustaining that cryptocurrencies have been unsuitable as underlying property.
The publish Korean Shares Soar on President Lee’s Gained-Backed Crypto Pledge, Kakao Pay Doubles appeared first on Cryptonews.