Market Trends and Analyst Insights
South Korea’s financial landscape is undergoing a significant shift. According to CryptoQuant CEO Ki Young Ju, the KOSPI—South Korea’s primary stock market index—has soared to an all-time high. Meanwhile, trading volumes on Korean crypto exchanges have plunged to historic lows.
This stark contrast between traditional and digital asset markets is raising questions about the reasons behind it—and analysts believe politics might be playing a major role.
Government Influence on Investment Flows
An analyst cited by Ju suggests the South Korean government is intentionally boosting the stock market to redirect speculative investments away from real estate. This theory posits that by making the stock market more attractive, the government is reducing upward pressure on property prices—an issue that has long troubled the nation’s economy and public sentiment.
This market shift could explain the low engagement in crypto trading, especially considering South Korea’s typically high retail participation in digital assets.
According to CryptoQuant CEO Ki Young Ju, South Korea’s stock index KOSPI has hit an all-time high, while trading volume on Korean crypto exchanges has dropped to a record low. He agreed with an analyst suggesting that the South Korean president is actively boosting the stock… pic.twitter.com/z032aaTp0V
— Wu Blockchain (@WuBlockchain) November 4, 2025
Political Pressures and Presidential Influence
The situation gains further complexity as South Korean President Yoon Suk-yeol faces multiple legal challenges. Critics argue that enhancing stock market performance might be a strategic move to improve his approval ratings. With the public often sensitive to economic indicators like stock prices, a booming market could be leveraged to build political support.
The dual impact—cooling the overheated real estate sector and boosting public perception—could be a calculated response amid growing scrutiny of the administration.