South Korea’s KOSPI index has risen 175% in a year, just topping 6,000, but Bitcoin has lost half its value since October.
South Korean retail investors, once the world’s most active buyers of cryptocurrencies, appear to be directing their funds toward AI and semiconductor stocks.
Under a new law, Korean cryptocurrency influencers will be forced to disclose their stock holdings and could face penalties.
Bitcoin has lost 45% of its value since October and is currently trading at $68,617. This month, the Crypto Fear and Greed Index dropped to 5, its lowest value ever. Meanwhile, the Korean stock market has just hit a new all-time high.
The KOSPI index topped 6,000 this week and has risen nearly 175% over the past year. This has resulted in one of the strongest bull markets in the world’s major markets today. And that growth is primarily driven by one area: semiconductors.
Samsung and SK Hynix boost Korean stock market rally
Chip manufacturers Samsung Electronics and SK Hynix hold large weights within KOSPI. As semiconductor earnings expectations rise, the overall market rises.
South Korean data from early February confirms this. Despite the reduced number of business days due to the Lunar New Year holiday, the average daily export volume increased by +47% year-on-year. Semiconductor exports alone jumped +134% year-on-year, accounting for more than one-third of total shipments.
Since semiconductor exports directly impact the profits of South Korea’s largest listed company, the rise in global demand for AI is quickly leading to higher earnings expectations across the stock market.
Korean retail investors are shifting from cryptocurrencies to AI stocks
South Korea has historically been one of the most retail-driven crypto markets in the world. In bull markets, domestic demand is often so high that Bitcoin trades at a higher price on South Korean exchanges compared to global markets. This price difference is known as the kimchi premium, and it has long been seen as a sign that retail money is moving aggressively into cryptocurrencies.
That premium has now been significantly compressed.
Since the October crash, retail funds that previously flowed into cryptocurrencies appear to have shifted to domestic stocks, particularly AI stocks and semiconductor stocks linked to the global AI investment boom.
Korean retail money is not disappearing. They may simply be pursuing AI rather than virtual currency.
South Korea proposes disclosure rules for crypto influencers
On the regulatory front, South Korean lawmaker Kim Seung-won has proposed a proposal that would require cryptocurrency influencers to disclose their holdings and the compensation they receive for promoting their projects. Violations would be subject to the same penalties as market manipulation and unfair trade practices.
Also read: South Korea moves closer to groundbreaking crypto regulation with Digital Asset Basic Act
The Korean stock market is breaking records. Bitcoin is still trying to recover from its worst decline since 2022. And the retail capital that once supported the kimchi premium is causing a completely different bull market in 2026.