Bloomberg: Korean retail investors pivot from crypto to domestic stocks

South Korean retail investors are leaving the cryptocurrency market in large numbers and shifting to domestic and overseas stocks following a downturn in crypto prices that began last October, Bloomberg reported. The outlet noted that after suffering significant losses, these investors have turned their attention elsewhere. Crypto exchange trading volume, which once surpassed that of the KOSPI, has plummeted by approximately 65% year-over-year. During the same period, KOSPI trading volume surged by 221%. Bloomberg explained that South Korean retail investors had heavily concentrated their investments in volatile altcoins, leading to the highest levels of investor fatigue. These funds are now moving into domestic AI and robotics-themed stocks, pushing credit balances at securities firms past 30 trillion won. The report also cited President Lee Jae-myung's policy, which includes a pledge for the KOSPI to reach 5,000, as another factor drawing capital away from crypto. While investors are leaving the market out of disappointment, Bloomberg suggested that if blockchain technology successfully integrates into mainstream financial services in the future, the market could potentially be reshaped with a focus on utility.