Korean Investors Ditch Bitcoin for AI Chips as Stock Market Soars

In late 2025, South Korean retail investors have significantly shifted their focus from cryptocurrency trading to the stock market, particularly in semiconductor stocks linked to AI technology. Trading volumes on major crypto exchanges, Upbit and Bithumb, have plummeted by up to 80% year-over-year, mirroring a broader collapse in the crypto market. Meanwhile, the KOSPI index has surged over 70% in 2025, bolstered by gains from tech giants like Samsung Electronics and SK hynix. Retail investors previously engaged in speculative crypto trading are now intensely trading semiconductor stocks, viewing them as the new frontier for investment, driven by a national push towards AI development. This shift indicates a mere reallocation of investment strategies rather than a retreat from speculation. Active trading accounts have increased, and new investment strategies like margin lending and leveraged ETFs have become popular. Despite the reduced activity in crypto markets, analysts suggest that as trends evolve, these investors may return to crypto as new opportunities arise.

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