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 patrons of cryptocurrencies, seem like directing their funds towards AI and semiconductor shares.
Below a brand new regulation, Korean cryptocurrency influencers might be pressured to reveal their inventory holdings and will face penalties.
Bitcoin has misplaced 45% of its worth since October and is at the moment 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 almost 175% over the previous yr. This has resulted in one of many strongest bull markets on this planet's main markets in the present day. And that progress is primarily pushed by one space: semiconductors.
Samsung and SK Hynix help 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 knowledge from early February confirms this. Regardless of the decreased variety of enterprise days as a result of Lunar New Yr vacation, the common day by day export quantity elevated by +47% year-on-year. Semiconductor exports alone jumped +134% year-on-year, accounting for greater than one-third of whole shipments.
Since semiconductor exports straight impression the income of South Korea's largest listed firm, the rise in international demand for AI is rapidly resulting in greater 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 this planet. In bull markets, home demand is usually so excessive that Bitcoin trades at a better value on South Korean exchanges in comparison with international markets. This value distinction is named the kimchi premium and has lengthy been seen as an indication that retail cash is transferring aggressively into cryptocurrencies.
That premium has now been considerably compressed.
Because the 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 growth.
Korean retail cash isn’t disappearing. They might merely be pursuing AI quite than 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 initiatives. Violations might 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 Primary Act
The Korean inventory market is breaking data. Bitcoin continues to be making an attempt to get better from its worst decline since 2022. And the retail capital that after supported the kimchi premium is inflicting a very completely different bull market in 2026.
