It is claimed that the recent stagnation in South Korea’s digital asset market may soon result in great activity. Jeff Park, a researcher at Bitwise, suggested that individual investors have not yet turned to Bitcoin due to the strong performance in local stock markets, but this could happen soon.
Transition from Technology Stocks to Crypto is on the Agenda
According to Park, the capital of South Korean investors, currently concentrated in the country’s leading companies such as SK Hynix, Samsung Electronics and Hanmi Pharmaceutical, may shift to Bitcoin in the near future. These companies are among the strongest stocks in the KOSPI index and have benefited significantly from the recent AI-driven rallies.
Samsung and SK Hynix are globally recognized as leaders in high-bandwidth memory and semiconductor technologies. These two companies, in particular, were positively affected by the ongoing artificial intelligence trend in 2025 and 2026. Hanmi is among the largest local representatives in South Korea’s biotechnology and pharmaceutical industry.
While individual investors keep their capital here due to the high returns in these stocks, at some point when there is a perception of a peak in the stock market, they can close their positions and turn to Bitcoin en masse. Park states that this development will create a significant liquidity movement in the market.
Kimchi Premium and Historical Dynamics
South Korea is known for what is known as the “Kimchi premium” in the cryptocurrency world, where Bitcoin often trades at prices between 5 percent and 15 percent higher on local exchanges compared to global exchanges. This is considered as an indicator of the intense demand and volume of individual investors in the country.
Individual investors are known for their fast and high-risk buy-sell strategies, which can lead to sudden price movements in the market. Park argues that if these investors turn to Bitcoin in a future return of capital, its effects may be felt not only in the domestic market but also in the global cryptocurrency market.
Regulation And Market Pressures
The South Korean government has recently increased supervision over the digital asset industry. The 22 percent capital gains tax and the tightening of reporting requirements are putting pressure on the market. In addition, the recovery process of the industry continues after the recent Bithumb exchange crisis.
It is stated that at some point it is only a matter of time before South Korean retail investors exit stocks such as SK Hynix, Samsung and Hanmi and turn to Bitcoin.
According to experts, if Bitcoin starts to outperform the leading technology giants of the KOSPI index in the long term, the expected mass capital migration may occur in the market and this may initiate a new wave of liquidity at the global level.
