Korean stocks have surged in early 2025, with the Kospi index increasing nearly 30% year-to-date. President Lee Jae-myung’s pledge to support stablecoins linked to the national currency has spurred this growth.
Stocks tied to the Bank of Korea’s digital currency initiative, particularly Kakao Pay and LG CNS, have experienced remarkable gains, with Kakao Pay’s shares doubling in value within a month.
Retail investment has skyrocketed, leading to margin loans surpassing 20.5 trillion Won, roughly 15 billion USD. A proposed bill is set to allow companies with minimal capital to issue stablecoins, alongside concerns about systemic risks.
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