In recent months, South Korean investors have been transitioning their focus from traditional tech stocks, particularly those from the U.S., to the burgeoning world of cryptocurrencies. This change reflects a growing dissatisfaction with giants like Tesla and an increasing attraction to digital assets.
Declining Interest in Tesla, Rising Popularity of Crypto Stocks
With a notable shift reported by Bloomberg, it appears that Tesla’s stock is losing allure among South Korean retail investors. In August, these investors sold off significant portions of their Tesla shares, highlighting a change in sentiment toward more volatile yet promising crypto equities.
The electric vehicle manufacturer has witnessed an astonishing $1.8 billion pullback in investment over recent months, signaling a dramatic decline in enthusiasm from its dedicated retail investor base.
One investor, aged 33, voiced feelings of disenchantment, mentioning that the company has faltered in captivating the public with its advancements in AI. This retail trader, who had been a long-term holder since 2019, decided to reallocate funds towards stocks that exhibit higher growth potential.
Despite still being the leading foreign stock among South Korean investors, the statistics reveal that they offloaded approximately $657 million of Tesla stock in August, marking the most considerable outflow since 2019.
Conversely, the trend has seen a spike in interest towards crypto-related stocks, such as Bitmine Immersion Technologies Inc., where investors infused $253 million in August, positioning the company as a significant player linked to Ethereum (ETH).
Previously, South Korean investors purchased around $259 million worth of Bitmine stocks in July alone, solidifying the company’s status as a top foreign security.
A Wave of Investment into Cryptocurrencies
Recent data from the Korean Center for International Finance (KCIF) indicates a substantial rise in crypto-linked equities among the most-bought stocks by local retail investors, increasing from 8.5% at the beginning of the year to 36.5% by June, though settling at 31.4% in July.
As reported by The Korea Times, individuals have invested over $12 billion in crypto-related stocks in 2025, with prominent names like Bitmine, Circle Internet Group, and Coinbase leading this charge.
Last month’s surge witnessed traders invest $426 million in Bitmine, $226 million in Circle, and $183 million in Coinbase, marking a pivotal shift away from previous trends dominated by U.S. tech giants.
The article further emphasizes that “Korean investors pouring billions into crypto stocks are reshaping global capital flows in ways that Wall Street cannot overlook.” This trend has been particularly fueled by legislative developments surrounding stablecoins in both the U.S. and South Korea.
As the call for regulatory clarity around digital assets grows, South Korea has seen substantial attention directed towards the development of won-pegged stablecoins. President Lee Jae-myung has committed to addressing new legislation involving crypto-based exchange-traded funds (ETFs) as part of his electoral agenda.
In the wake of these discussions, several bills concerning the issuance and management of KRW-pegged stablecoins have made their way into South Korea’s National Assembly. However, industry voices express concerns regarding potential regulatory overreach and the disconnect prevalent between governmental regulations and industry practices.
On September 1, the newly appointed Financial Services Commission (FSC) Chairman Lee Won-eun noted that digital assets differ from traditional financial instruments and expressed hesitation about policies that would facilitate investment in virtual assets through retirement accounts. This position has alarmed many industry stakeholders, raising fears of continued imbalanced regulatory policies.
