South Korea Becomes Asia’s Top Stock Market Driven by Digital Assets

South Korea leads Asia's stock market performance in H1 2025, largely driven by a focus on digital assets under President Lee Jae-myung's new economic policies. Key developments include:

Kakao Pay doubled in value; LG CNS rose nearly 70%.
The Kospi index increased by 30%, reaching a four-year high.
Aton shares spiked 80%; ME2ON tripled in valuation, linked to the launch of a dollar-pegged stablecoin.
Margin lending surged to ₩20.5 trillion ($15 billion).

Stablecoin Developments

The proposed Digital Asset Basic Act aims to provide regulatory clarity for stablecoins, allowing companies with ₩500 million in capital to issue them. Eight major banks plan to launch a won-pegged stablecoin by late 2025 or early 2026, supported by various financial institutions and organizations.

Crypto Ownership Trends

A report indicates that over 25% of South Koreans aged 20 to 50 own digital assets, with crypto comprising 14% of their assets. Among investors in their 50s, 78% use crypto for wealth building, reflecting a shift towards long-term financial strategies.