Stablecoin reform drives crypto-related stocks in Korea
Korean stocks rally on stablecoin optimism
Korean retail investors are flocking to companies expected to benefit from a favorable environment for stablecoins.
As reported by Catenaa, South Korean stock markets surged this week after newly elected President Lee Jae-myung pledged strong support for stablecoins backed by the Korean won, sparking investor euphoria toward crypto-related stocks.
A proposed law by the ruling party would allow firms with just 500 million won (approx. $369,000) in capital to issue stablecoins.
While legislative details are still unknown, and Bank of Korea Governor Rhee Chang-yong warned about risks from non-bank issuers — citing threats to monetary policy and capital control — investor interest in potentially benefiting companies drove their stock prices sharply higher before a correction.
Investor optimism was further fueled by President Lee’s appointment of Kim Yong-beom, a vocal digital asset advocate, as his chief policy advisor.
Optimism outweighs risk warnings
Since the beginning of the year, shares of mobile payments firm Kakao Pay have more than doubled, and LG CNS is up nearly 70%.In the Kosdaq market, ME2ON tripled after launching a USD-pegged stablecoin through its casino-focused subsidiary, while fintech security firm Aton surged 80%.
Price dynamics of Kakao Pay shares since the beginning of the year. Source: Trading View
The Kospi index of Korean companies is now up 30% year-to-date on stablecoin-related optimism.
Meanwhile, the Financial Services Commission presented a roadmap to the Presidential Committee outlining plans for spot crypto ETFs and stablecoin oversight — hinting at broader crypto reforms in the second half of 2025.
As we wrote, South Korea to reduce crypto exchange fees
