- fter a 25% US tariff announcement, South Korean investors shifted from crypto to stocks as the KOSPI moved above 5,000.
- CoinGecko showed trading drops on Upbit (51%) and Bithumb (35%), while Woori Technology Investment and Hanwha Investment & Securities rose over 4% and 7%.
- Hyundai Motor fell nearly 5% after the news but closed 1% lower than Monday, as retail traders waited before making moves.
South Korean investors pulled back from crypto trading after a new tariff announcement from US President Donald Trump, while local equities moved to record territory. Exchange data showed sharp drops in activity on major platforms, even as the Korea Composite Stock Price Index climbed to a level it had never reached before.
Tariff announcement shifts the focus of south korean investors
Trump posted on Truth Social on January 26 that tariffs on South Korea would rise to 25%, up from 15%, for the car, pharmaceutical, and lumber industries. In the same message, he criticised South Korean President Lee Jae-myung, saying Lee had not met expectations tied to a $350 billion investment bill agreed in July 2025.
The tariff news initially weighed on South Korean shares. After that first reaction, the market recovered. The Korea Composite Stock Price Index advanced by almost 3% and reached a record high of more than 5,000 points for the first time. The move in stocks contrasted with the direction of crypto trading interest among South Korean investors over the same period, based on exchange volume readings.
Crypto volumes fall as south korean investors reassess risk
CoinGecko data showed a steep decline in trading volumes on two major South Korean crypto exchanges. Activity on Upbit dropped by 51%, while Bithumb volumes fell by 35%. The change came as attention moved toward the KOSPI’s surge and away from large crypto bets, according to commentary included in the source.
Ryan Yoon, a research analyst at Tiger Research, described a growing separation between traditional equities and crypto in South Korea. He said investors were becoming worn down by crypto price swings and were redirecting fear of missing out toward the rising KOSPI. In his view, the recent period has widened the distance between the stock market and crypto trading behaviour among South Korean investors.
The shift also echoed a broader discussion from last year in the US, where specialists pointed to signs that stock and crypto markets were moving less closely together. Still, the source noted that Bitcoin and the wider crypto market often track risk assets, including US technology shares, even if the last 24 hours in South Korea looked different.
Retail caution and selective stock gains among south korean investors
Some retail crypto traders described hesitation rather than quick repositioning. A Seoul-based crypto trader identified as Cho said many traders planned to hold and wait before making major decisions. She asked for partial anonymity, citing the sensitivity of discussing the situation openly. Cho also said she sensed the market was stalled, with participants watching to see how other traders would respond.
At the same time, the source reported no clear signal that institutional money was leaving the broader digital-asset space. Shares sometimes referred to as “crypto stocks” moved higher. These are South Korean listed companies that hold minority stakes in domestic crypto exchanges. Among the examples cited were Upbit backers Woori Technology Investment and Hanwha Investment & Securities. Their share prices rose by more than 4% and 7%, respectively.
Yoon said the equity market seemed to absorb the tariff headlines, while the crypto market reacted more sharply. Even so, the KOSPI’s record day included volatility in some names. Hyundai Motor shares fell by almost 5% soon after Trump’s post appeared, before recovering part of the loss. The stock finished the day 1% below Monday’s closing level.
Conclusion
The latest tariff announcement coincided with a clear divergence in local market activity, with South Korean investors cutting crypto trading volumes and paying closer attention to the stock market’s rebound. Upbit and Bithumb recorded large declines in trading, while the KOSPI climbed to a first-time high above 5,000 points, and some exchange-linked equities rose despite the cautious mood among retail crypto traders.
Disclaimer
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