Big Crypto Money Move in Korea - Impact on Key Listed Korean Companies

• There has been a big crypto money move in Korea. Market cap of crypto currencies held in crypto exchanges in Korea nearly doubled from October to November 2024.

• We discuss 8 major listed companies in Korea that are major beneficiaries (directly and indirectly) of this big move into crypto currencies in Korea.

• Some of the major beneficiaries include Kakao Corp, KT Corp, Hanwha Securities, Woori Technology Investment, and Vidente.

There has been a big crypto money move in Korea. According to the payment settlement report published by the Bank of Korea on the 21 April, the market capitalization of crypto currencies (virtual assets) remained steady from 58.6 trillion won at end of July 2024 to 58 trillion won ($41 billion) at end of October 2024. This amount nearly doubled to 102.6 trillion won at end of November and 104.1 trillion won ($73 billion) at end of December 2024, which is the largest amount ever.

The number of virtual assets investors in Korea increased by 9.2% from 16.7 million at end of July to December 2024. The amount of daily transactions amount of crypto currencies in Korea jumped from 3.4 trillion won in October to 14.9 trillion won in November, and 17.2 trillion won in December 2024.

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Major Recent Factors Driving Higher Demand for Crypto Currencies in Korea

One of the major recent factors driving higher demand for crypto currencies in Korea has been due to the increased expectations for a pro-virtual asset policy after the Trump won the US presidency. Trump had expressed a friendly stance toward crypto currencies.

The Bank of Korea explained that the approval of virtual asset spot listed index funds (ETFs) in the United States and Hong Kong and the resolution of regulatory uncertainties due to the implementation of the Crypto Assets Control Act (MiCA) in the European Union (EU) also helped to drive positive sentiment of crypto currencies in Korea.

The strong demand for stable coins have also driven higher demand for crypto currencies in Korea. According to Bank of Korea, it also plans to establish a stable coin regulatory system and also expand corporations' participation in the virtual asset market.

Source: Bank of Korea

Source: Bank of Korea

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Big Money Move to Cryptocurrencies in Korea - Key Listed Companies That Should Benefit from this Trend

A) Market Cap of More than 500 Billion Won - The following four listed companies (with market cap of more than 500 billion won) are key beneficiaries of that should benefit from big money move to cryptocurrencies in Korea. Both Kakao Corp and KT Corp are indirect owners of major cryptocurrency exchanges.