South Korean Retail Funds Reverse Course From Crypto Into Stocks and AI Tech Shares

South Korean retail investors have long been a major source of crypto-market liquidity. But AI and memory-chip demand has lifted Samsung Electronics and SK Hynix, helping drive the KOSPI to record highs and pushing the total value of South Korean equities to about $3.8 trillion. Wintermute said retail investors have shifted from buying stocks and crypto simultaneously to rotating between them. Lighter has also launched onchain perpetual contracts tracking South Korean stock indices and technology shares to meet the demand.

As of May 26, 2026, trading volume across the five largest won-based platforms, including Upbit and Bithumb, was just 8% of KOSPI turnover, far below 323% in December 2024. Won-denominated crypto trading volume fell 71% over the period, while KOSPI turnover rose 243%. Allium Labs separately estimated that stablecoin balances across the five platforms declined from $575 million in July 2025 to $188 million in mid-March 2026. The kimchi premium turned negative in March.