Korean Shares Soar on President Lee’s Received-Backed Crypto Pledge, Kakao Pay Doubles

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 practically 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 firms 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 practically 70% earlier than pulling again barely, FT reported.

On the Kosdaq junior market, Aton, a fintech safety agency, noticed its shares soar 80%, whereas cell 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 Finest-Performing Market in H1 2025

The rally has pushed South Korea’s Composite Inventory Value Index or KOSPI up nearly 30% this 12 months, 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 exhibits.

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 social gathering this month, proposing to permit firms with as little as Won500 million in fairness to problem won-based stablecoins.

Critics warn this might expose the monetary system to undercapitalized gamers and heighten systemic dangers.

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 stress on the Financial institution of Korea to speed up its personal digital foreign money rollout.

Banks, brokerages, and fintech corporations are desirous 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 introduced 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 increase 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 threat considerations, sustaining that cryptocurrencies had been unsuitable as underlying property.

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