Why have Korean retail investors shifted their overseas portfolios from US big technology to virtual asset-related stocks? What is especially tied to the stubcoin? A recent report by the Korean International Finance Center (KCIF) revealed by the Korean Times on August 11, 2025, shows that changes in investors’ sentiment are primarily based on the US genius law.
Interestingly, the percentage of crypto-related names among the top 50 net-purchased foreign stocks by Koreans jumped from 8.5% in January to 36.5% in June, relaxing to 31.4% in July this year.
Additionally, net purchases of the top seven big tech stocks in the US averaged $1.68 billion (January to April) each month to $440 million in May, $670 million in June and $260 million in July.
Korean investors are rapidly changing large tech stocks from us Stablecoin InvestmentsDrives into upcoming KRW-backed Stablecoin projects like strong local regulations, US Genius Law, and the launch of Cacao Bank in 2023. This pivot emphasizes growth… pic.twitter.com/djpstcs9ft
– Famacrypt (@famacrypt) August 11, 2025
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KCIF believes the rotation is attributed to increased interest in Stablecoin-related stocks
“Investments in virtual assets, particularly stocks related to Stablecoins, have grown following the passage of the US Genius Act,” the report states.
The report attributes to a growing interest in absurd stock after the US genius law was caught up in the law by US President Donald Trump, and the US genius law established a regulatory framework that allows the private sector of stubcoin to be issued.
In particular, Korean investors are interested in US stocks as domestic stock markets struggle. However, KCIF stated:Although domestic stock markets have outperformed overseas markets since June, local currencies have been strengthened, urging individual investors to withdraw from foreign markets. ”
Read more: South Korea’s political heavyweight spreads over stablecoin bills
South Korea’s political heavyweights are square over the stubcoin bill
Two of South Korea’s biggest political parties are on the centre stage, and have announced their rival Stubcoin bills within the country. The ban on paying interest on Stablecoins is the most controversial issue in the Stablecoin bill.
Lawmakers from both the ruling Democratic Party (DP) and the opposition People’s Rights Party (PPP) introduced laws in late July 2025 that could pave the way for winning stubcoins.
According to a local news report released on July 28, 2025,His ruling party believes interest payments should be banned to prevent market disruption, but the opposition believes that winning stubcoins need to be competitive. ”
Each proposal reflects differences in innovation, protection and financial sovereignty.
The newly elected South Korean president, Lee Jae-myeon, has openly advocated for stubcoin, and his administration shows that it will fill a major gap in the country’s financial environment.
Jae-Myung proposes low company eligibility in defending Stablecoins, as a 500m winner ($370,000) to be able to issue Stablecoins.
Explore: Top 20 Cryptos to Buy in August 2025
Key takeout
KCIF flagged lingering concerns about the actual economic impact of the US tariff scheme, suggesting that South Korean retail investors are likely to be cautious about inventory close to foreign stocks.
According to KCIF, Korean retail investors have switched from large US engineers to stocks related to overseas stocks after the US genius law became law.
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