South Korea’s KOSPI hits record highs as crypto trading drops to historic lows, signaling a major investor shift in 2025.
South Korea is witnessing an extraordinary financial shift as the KOSPI index reaches its highest level ever, while trading volumes on domestic cryptocurrency exchanges drop to historic lows. This contrast marks one of the sharpest turnarounds in investor behavior in recent years.
KOSPI Soars to Record Levels
The Korea Composite Stock Price Index (KOSPI) reached a record 4,221.87 points toward the end of 2025. The rally has been driven by a surge in technology and semiconductor-related stocks, which have benefited from the global boom in artificial intelligence.
Companies such as Samsung Electronics and SK Hynix have seen their share prices more than double since the start of the year.
According to CryptoQuant CEO Ki Young Ju, South Korea’s stock index KOSPI has hit an all-time high, while trading volume on Korean crypto exchanges has dropped to a record low. He agreed with an analyst suggesting that the South Korean president is actively boosting the stock… pic.twitter.com/z032aaTp0V
— Wu Blockchain (@WuBlockchain) November 4, 2025
The stock market’s growth has attracted large inflows from both domestic and foreign investors. According to local data, daily trading volume on the KOSPI reached 16.6 trillion Korean won in October, about 44% higher than the previous month.
Brokerage firms have reported technical slowdowns due to the sudden rise in trading activity, showing how retail investors are flooding the market.
Government policies have also supported this rise. Since taking office, President Yoon Suk-yeol has promoted the “Korean Shareholder Value Revolution,” which encourages companies to buy back shares and increase dividends.
These measures, combined with reduced capital gains taxes and stronger oversight of corporate governance, have helped restore investor confidence in local stocks.
Crypto Market Faces Historic Decline
While the stock market reaches new highs, South Korea’s cryptocurrency sector has entered a period of deep slowdown.
Data from CryptoQuant shows that trading volumes on Korean exchanges such as Upbit and Bithumb have fallen sharply. Upbit’s average daily trading volume in November 2025 dropped to $1.78 billion, compared to $9 billion in December 2024—an 80% fall within a year.
Bithumb has also seen its volume drop by nearly 70% over the same period. The reduced activity reflects a broader cooling of investor interest.
Search trends for Bitcoin in South Korea have declined by more than half compared to late 2024, and online discussions that once focused on altcoins now center on semiconductor and AI-related stocks.
CryptoQuant CEO Ki Young Ju confirmed this trend, saying that Korean stock index KOSPI hits an all-time high, while crypto trading volume has hit a yearly low. Analysts believe that many retail traders have moved their capital from digital assets to traditional equities.
Korean stock index(KOSPI) hits all-time high, trading volume on Korean crypto exchanges hits yearly low. pic.twitter.com/JjRt7gTasg
— Ki Young Ju (@ki_young_ju) November 3, 2025
Government Strategy and Market Behavior
Analysts suggest that the government’s approach has played a major role in this market shift.
The administration has sought to direct speculative capital away from real estate and crypto markets by making equities more appealing. A local analyst wrote, “The president is actively boosting the stock market to shift speculation away from property.” Ki Young Ju later stated that he agreed with this view.
At the same time, the country’s strong semiconductor industry has offered investors a new area of growth. SK Hynix reported third-quarter revenue of $17.1 billion and an operating profit of $8 billion, both record highs.
The company has already secured orders for all production capacity through 2026. These figures have strengthened public faith in the technology sector.
As South Korea’s economy adjusts, many investors see equities as a safer and more promising option than cryptocurrencies. With traditional finance showing renewed strength, digital assets remain on the sidelines, awaiting the next market cycle.