South Korea’s KOSPI index has risen 175% in a yr, simply topping 6,000, however Bitcoin has misplaced half its worth since October.
South Korean retail buyers, as soon as the world’s most energetic consumers of cryptocurrencies, seem like directing their funds towards AI and semiconductor shares.
Beneath a brand new regulation, Korean cryptocurrency influencers shall be compelled to reveal their inventory holdings and will face penalties.
Bitcoin has misplaced 45% of its worth since October and is at present buying and selling at $68,617. This month, the Crypto Concern and Greed Index dropped to five, its lowest worth ever. In the meantime, the Korean inventory market has simply hit a brand new all-time excessive.
The KOSPI index topped 6,000 this week and has risen practically 175% over the previous yr. This has resulted in one of many strongest bull markets on the earth’s main markets immediately. And it is primarily pushed by one sector: semiconductors.
Samsung and SK Hynix assist Korean inventory market rally
Chip producers Samsung Electronics and SK Hynix maintain giant weights inside KOSPI. As semiconductor earnings expectations rise, the general market rises.
South Korean information from early February confirms this. Regardless of the lowered variety of enterprise days as a result of Lunar New 12 months vacation, the common every day export quantity elevated by +47% year-on-year. Semiconductor exports alone jumped +134% year-on-year, accounting for greater than a 3rd of whole shipments.
Since semiconductor exports instantly influence the income of South Korea’s largest listed firm, the rise in world demand for AI is rapidly resulting in larger earnings expectations throughout the inventory market.
Korean retail buyers are shifting from cryptocurrencies to AI shares
South Korea has traditionally been some of the retail-driven crypto markets on the earth. In bull markets, home demand is commonly very excessive, and Bitcoin typically trades at the next worth on South Korean exchanges than within the world market. This worth distinction is called the kimchi premium, and it has lengthy been seen as an indication that retail cash is transferring aggressively into cryptocurrencies.
That premium has now been considerably compressed.
For the reason that October crash, retail funds that beforehand flowed into cryptocurrencies seem to have shifted to home shares, notably AI shares and semiconductor shares linked to the worldwide AI funding increase.
Korean retail cash isn’t disappearing. They could simply be chasing AI as a substitute of digital foreign money.
South Korea proposes disclosure guidelines for crypto influencers
On the regulatory entrance, South Korean lawmaker Kim Seung-won has proposed a proposal that might require cryptocurrency influencers to reveal their holdings and the compensation they obtain for selling their tasks. Violations shall be topic to the identical penalties as market manipulation and unfair commerce practices.
Additionally learn: South Korea strikes nearer to groundbreaking crypto regulation with Digital Asset Fundamental Act
The Korean inventory market is breaking information. Bitcoin continues to be attempting to get well from its worst decline since 2022. And the retail capital that after supported the kimchi premium is inflicting a totally totally different bull market in 2026.
