The Great Korean Pivot: From Memecoins to Machine Chips

Why It Matters

The pivot redirects speculative capital from a volatile crypto sector to semiconductor equities, bolstering Korea’s AI‑chip supply chain and reshaping global AI investment flows. It also signals a broader market‑structure shift that could heighten equity volatility and influence policy on retail leverage.

Summary

South Korean crypto exchanges saw daily volumes plunge up to 80% YoY, with Upbit falling from $9 bn to $1.8 bn and Bithumb losing two‑thirds of liquidity. Retail investors have migrated to the equity market, driving the KOSPI up more than 70% in 2025, spurred by AI‑chip titans Samsung Electronics and SK hynix. Active trading accounts rose to 95.3 million, while margin‑linked ETFs and leveraged equity products surged, turning stocks into the new speculative arena.