The South Korea stock market has increased on a wave of enthusiasm for Won’s digital assets after the newly elected president Lee Jae-Myung has promised support for the stablecoins supported by the national currency.
The main dishes to remember:
- South Korea’s Kospitic index jumped almost 30% YTD in last week.
- The rally is motivated by President Lee’s commitment to support the stablescoins supported.
- Actions like Kakao Pay and Me2on have skyrocketed while retail investors have stacked in stocks related to the crypto.
The actions of companies linked to the digital currency initiative of the Korean bank, in particular Kakao Pay and LG CNS, has skyrocketed since Lee’s announcement, with Kakao Pay more than doubling of value this month and LG CNS climbing almost 70% before retreating slightly, reported the FT.
On the Kosdaq junior market, ATON, a Fintech safety company, saw its actions jump by 80%, while the developer of mobile games Me2on tripled after its subsidiary launched a pointcoin at a dollar for casino platforms.
The Kospitic stock goes up 30% YTD, the most efficient market in Korea in H1 2025
The rally pushed the composite equity share index of South Korea or Kospi increased by almost 30% this year, bringing it to peaks close to four years and by doing the most efficient market in Asia for the first half of 2025.
Retail investors flocked to the rally, with current margin loans inflating to Worn20.5 Billions ($ 15 billion), according to data from the Korea Financial Investment Association.
Despite the euphoria, the government has not yet revealed specific policies for the Stablecoins Won, leaving the market to exchange expectations fueled by the appointment by President Lee of Kim Yong-Beom, a well-known defender of digital assets, as a chief policy advisor.
Momentum was also supported by a bill presented by the ruling party this month, proposing to authorize companies with as little as 500 million equity to issue Stablecoins Won.
Critics warn that this could expose the financial system to undercapitalized players and increase systemic risks.
South Korea, which houses one of the markets of the most active cryptographs in the world, has seen trade in stablecoins at Pie at a dollar hit Won57 Billion in the first quarter, increasing the pressure on the Bank of Korea to accelerate its own deployment of digital currency.
Banks, brokerage houses and fintech companies are impatient to enter the space of stablescoin but remain suspicious of future regulations.
The governor of the Bank of Korea, Rhee Chang-Yong, expressed his concerns concerning the stabbed issues by non-banking entities, highlighting the risks for capital flows and monetary policy.
The Central Bank plans to consult the main lenders on a second pilot for its digital currency.
The FSC Eyes of Korea have cryptographic ETFs
As indicated, the South Korea Financial Services Commission (FSC) presented a roadmap to the Presidential Committee on Policy Planning Offering the approval of ETF Crypto.
This decision was made after President Lee Jae-Myung’s campaign promise to modernize the rules of digital assets and to stimulate opportunities for young investors.
The plan describes the implementation measures for punctual crypto FNB and regulatory frameworks for the stablescoins Won in the second half of 2025.
Historically, the FSC has blocked FNB crypto on volatility and financial risk problems, maintaining that cryptocurrencies are not suitable as underlying agents.
Post-Korean actions hover over the pledge of Crypto won by President Lee, Kakao Pay Doubles appeared first on Cryptonews.
