Korean retail investors shifted capital from cryptocurrency markets to domestic stocks as KOSPI trading volume reached 65.8 trillion won on the 7th, a fourfold increase from 15 trillion won during the same period last year according to Korea Exchange data. The 24-hour trading volume of South Korea's top five crypto exchanges totaled approximately 1.38 trillion won on the same day, representing just 2.1% of KOSPI's trading volume and marking a 45% decline from approximately 2 trillion won recorded on the 9th of last month. The capital reallocation occurred as individual investors abandoned the pursuit of "100x coins" in favor of blue-chip stocks like Samsung Electronics and SK Hynix, which recently exhibited volatility patterns previously associated with altcoins.
KOSPI Trading Volume Surges Fourfold as Crypto Exchange Activity Drops 45%
Korea Exchange data showed KOSPI trading volume on the 7th reached 65.8 trillion won compared to 15 trillion won during the same period last year. The combined 24-hour trading volume of Upbit, Bithumb, Coinone, Korbit, and Gopax totaled approximately 910.47 million dollars (1.38 trillion won) on the same day based on CoinGecko data. This represented 2.1% of KOSPI's trading volume on the 7th. On the 9th of last month, the five exchanges recorded approximately 1.65 billion dollars (2 trillion won) in 24-hour volume, accounting for 4.3% of KOSPI's trading volume at that time. The crypto trading volume declined approximately 45% over one month while the gap with KOSPI widened.
Individual Investors Shift Portfolios from Bitcoin to Samsung Electronics and SK Hynix
Kim, an office worker in his 30s, stated he previously opened Upbit upon waking but now checks his securities app first. Kim spent nights two years ago analyzing charts searching for "100x coins" with expectations that selecting the right altcoin could change his life. After the market cooled and his account value halved, Kim liquidated his crypto positions. His portfolio now consists primarily of Samsung Electronics and SK Hynix holdings. "I've given up on making big money with coins. I think KOSPI will make money faster," Kim said.
Park, an office worker in his 40s, responded to Samsung Electronics and SK Hynix corrections with additional purchases rather than selling. "In the past I would have thought money would move to coins when semiconductor stocks fell, but I don't expect that anymore. Even when stocks fall, money eventually flows back into stocks," Park stated. Lee, an office worker in his 20s, recently chose SK Hynix over Bitcoin. "Investing in SK Hynix seems likely to generate returns faster than waiting for Bitcoin to reach 200 million won," Lee said.
Samsung Electronics and SK Hynix Volatility Exceeds Bitcoin Trading Range
Samsung Electronics rose from 167,000 won at the end of March to 374,500 won on June 19, more than doubling in value. The stock recorded single-day movements including a 10.09% surge and a 12.31% decline. SK Hynix climbed from 806,000 won at the end of March to 2,987,000 won at the end of June, with daily volatility including a 15.91% jump and a 12.47% drop.
On the 7th, Hyosung Chemical rose 29.84% to the daily price limit, while Sejong Telecom (29.95%), Wonpoong Corporation (29.73%), and KPM Tech (29.87%) also hit upper limits. Bumhan Fuel Cell fell 30% to the lower limit. During the same period, Upbit's top gainers Superform and USDAI rose 10.43% and 5.13% respectively. Bitcoin traded in a 90-95 million won range following a decline to 92 million won in February, with daily volatility mostly limited to 2-3%.
Capital Market Expert Warns Against Chase-Buying in High-Volatility Stocks
Industry observers noted individual capital migration from crypto to stocks will likely continue as domestic equity strength coincides with crypto market stagnation. A capital market expert stated excessive concentration of retail funds in specific stocks resembles past altcoin investment frenzies. "If investors chase purchases based solely on short-term returns rather than corporate earnings or fundamentals, they may repeat crypto investment failures in the stock market. Only the venue has changed—the habit of pursuing quick gains must be guarded against," the expert said.
FAQ
What was the KOSPI trading volume on the 7th compared to last year?
KOSPI trading volume reached 65.8 trillion won on the 7th, a fourfold increase from 15 trillion won during the same period last year according to Korea Exchange data.
How much did Korean crypto exchange trading volume decline?
The combined 24-hour trading volume of South Korea's top five crypto exchanges dropped approximately 45% from about 2 trillion won on the 9th of last month to 1.38 trillion won on the 7th, representing just 2.1% of KOSPI's trading volume.
