South Korea’s stock market is booming, while interest in cryptocurrencies is falling. The main stock index, KOSPI, has risen sharply, reaching a record high and gaining 37% in just over a month – adding almost $1 trillion to its total value. Over the past year, the index has increased by an impressive 172%, and is now nearing the 7,000 point mark.
As an analyst, I’m observing an unprecedented surge in the South Korean stock market. The KOSPI reached a new all-time high today, and it’s been an incredible run – up 37% in just the last 34 days! That translates to roughly a $1 trillion USD increase in market capitalization. Looking at the bigger picture, the KOSPI has actually risen an astounding 172% over the past year.
— Bull Theory (@BullTheoryio) May 5, 2026
The recent market gains are due to increased investment from foreign and institutional investors, as well as a more positive outlook worldwide. A recovery in U.S. technology stocks while South Korea was on holiday led to almost $3.5 billion in new purchases.
Meanwhile, companies like Samsung and SK Hynix are now expected to earn more, increasing optimism that the recent market gains will continue.
One investor on X believes the recent rise in the KOSPI stock market isn’t finished yet. The index is continuing to climb, and could potentially reach 8,000 to 9,000 points before experiencing a significant drop. If the KOSPI breaks through its current resistance level, the long-term outlook could become even more positive, potentially leading to even higher gains.
The KOSPI index continues to rise sharply. I still expect it to reach 8,000-9,000 before experiencing a significant pullback. If the index breaks through its current upper limit, I’ll revise my long-term price targets upwards.
— Investing to Mars (@investingtomars) May 4, 2026
Crypto Weakens as Funds Rotate
Despite recent price increases, South Korea’s cryptocurrency market is slowing down. By February, the total value of crypto held on major exchanges like Upbit and Bithumb had fallen to 60.6 trillion won, a significant drop from its peak of 121.8 trillion won.
Trading has slowed down considerably. Daily trading volume dropped from 17.1 trillion won in late 2024 to only 4.5 trillion won, and the amount of money people have deposited in exchanges, which is usually an indicator of how much they plan to invest, has also decreased sharply. This indicates that investors are moving their money out of cryptocurrency and into stocks.
Stablecoin holdings have significantly increased, rising from less than 100 billion won to over 600 billion won. This jump suggests more people are turning to these currencies to protect themselves from fluctuations in other currencies, particularly seeking the stability of the dollar.
Experts observe a noticeable shift in investment patterns. Hong Sung-wook, an analyst at NH Investment & Securities, explains that money is moving from stocks – which have been performing well – into cryptocurrencies, where prices have recently fallen. Separately, Kim Min-seung from Korbit highlights that changes in exchange rates are increasing the popularity of stablecoins.
Things are changing quickly in South Korea: while the stock market is doing well, interest in cryptocurrency is currently decreasing.
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2026-05-05 14:53