South Korea was a major place for speculating in cryptocurrencies for a long time. People all over the country were interested in Bitcoin after the Kimchi Premium, and small players in the area could quickly change the markets. But as 2025 comes to a close, the story has turned around. The same crowd that once hunted meme coins on Upbit and Bithumb is now glued to semiconductor tickers, betting big on Samsung Electronics and SK hynix.
What used to be a crypto casino has transformed into a high-tech trading floor — powered not by memes, but by machine chips.
A Market Gone Quiet
Upbit used to be the biggest cryptocurrency exchange in the country, but trade volume has dropped by almost 80% year-over-year, from about $9 billion in late 2024 to just $1.8 billion by November 2025.. Similarly, Bithumb, the country’s second-largest exchange, has seen its liquidity shrink by more than two-thirds over the same period.
The wild volatility that once defined Korean trading — with daily swings between $5 billion and $27 billion — has flattened into a muted $2 to $4 billion range. Data from Dune Analytics shows that at the peak of the 2018 crypto mania, Korean exchanges handled over 280,000 daily deposits; now, that number rarely crosses 50,000.
In short, the lights are still on — but the thrill is gone.
The Rise of Semiconductor Fever
Korean traders didn’t abandon speculation; they just switched games. As crypto enthusiasm faded, attention shifted toward the KOSPI, which has rocketed over 70% in 2025 — its most dramatic surge in two decades.
October alone saw a 21% monthly gain and 17 new intraday records, led by AI chip giants Samsung Electronics and SK hynix, whose combined turnover now makes up more than a quarter of all exchange activity.
The number of active trading accounts in Korea soared from 86.5 million at the start of the year to 95.3 million by the end of October, according to The Korea Times.
The same thrill-seeking energy that once fueled meme coin rallies is now chasing semiconductor stocks — a familiar speculative spirit dressed in a new uniform.
Retail Euphoria Meets AI Ambition
Unlike the short-lived altcoin frenzies, Korea’s stock rally has a powerful foundation: artificial intelligence. Global giants like Nvidia and AMD drive demand for AI chips. At the center of this supply line are Korea’s tech giants.
High-bandwidth memory (HBM) is an important part for teaching AI models, and SK Hynix and Samsung make most of it. Because of what they do, they’ve become national heroes and symbols of scientific pride.
Add to that the policy push from President Yoon Suk Yeol’s administration, which aims to reduce the “Korea Discount” by encouraging dividends, improving corporate governance, and boosting domestic investments — and you get a state-supported bull run.
Same Spirit, Different Casino
Korean retail traders have always chased momentum — whether in crypto chatrooms or stock trading apps. Margin lending is booming again, leveraged ETFs are flying off the shelves, and retail participation has doubled in a year.
Bloomberg data suggests that nearly 30% of total equity holdings are now leveraged retail positions, with younger traders leading the charge. The shift isn’t about caution; it’s about comfort — speculation that feels safer, more legitimate, and proudly patriotic.
But this migration has reshaped global crypto liquidity. Without Korea’s retail base, memecoin rallies have fizzled, altcoins are struggling, and Bitcoin, despite hitting an all-time high last month, hovers near $100,000 with fading momentum.
Waiting for the Next Spark
History suggests this isn’t the end of Korea’s crypto story — just an intermission. When the AI rally cools or a new crypto narrative emerges, these traders may return with deeper pockets and sharper instincts.
For now, the nation that once lived for blockchain charts has fallen in love with circuit boards and chip earnings. The casino hasn’t closed — it’s just swapped tokens for transistors.