Amid the ongoing political crisis in South Korea, local investors are turning towards alternative assets such as cryptocurrency trading and US shares. The trading volume of the top five crypto exchanges in South Korea has rapidly increased, surpassing the trading volume of the local stock market. Upbit, Bithumb, Korbit, Coinone, and Gopax have reported significant trading volumes, with Upbit alone registering $11.34 billion in 24-hour trading volume. This surge in crypto trading is accompanied by a growing interest in US shares among South Korean investors, as they express a lack of confidence in the local stock market.
According to reports, local Korean investors have been actively trading shares in the US market, with transactions reaching $63.49 billion last month. Tesla shares have emerged as a popular choice among Korean investors, with transaction volumes amounting to $7.7 billion. The decline in the Korea Composite Stock Price Index (Kospi) and the KOSDAQ Index in South Korea reflects the dissatisfaction among the general population with the current market trends. This is further exacerbated by President Yoon Suk Yeol’s declaration of martial law and the subsequent travel ban imposed on him by anti-corruption officials.
Market analysts predict a shift in investment flows towards overseas markets due to the volatile situation in South Korea. The value of the Korean won against the US dollar has also experienced fluctuations, reaching 1,437 won during intraday trading. Despite this, Korean investors have shown a decline in purchases of US shares, with Thursday seeing a 6.4% decrease and Friday experiencing a 14% decline. Sales of US shares have also decreased by 10% and 21.3% on Thursday and Friday, respectively. Analysts suggest that the won-dollar exchange rate is likely to remain unstable as discussions regarding Yoon Suk Yeol’s impeachment continue.
The political turmoil in South Korea has led to a surge in interest in alternative investment options such as cryptocurrency trading and US shares. The trading volume on major crypto exchanges in South Korea has surpassed that of the local stock market, with Upbit and Bithumb reporting significant trading volumes. Local investors are also turning to US shares, with transactions in the US market amounting to billions of dollars. The decline in the Kospi and KOSDAQ indices reflects the growing dissatisfaction with the current market situation among South Korean investors.
President Yoon Suk Yeol’s declaration of martial law and subsequent travel ban have further fueled the uncertainty in the market, leading investors to seek safer investment options overseas. The fluctuating value of the Korean won against the US dollar and the decrease in purchases of US shares by Korean investors indicate a lack of confidence in the local market. As discussions regarding Yoon Suk Yeol’s impeachment continue, analysts predict further volatility in the won-dollar exchange rate.
Overall, the ongoing political crisis in South Korea has had significant repercussions on the local stock market, prompting investors to explore alternative investment avenues. The surge in cryptocurrency trading and US share transactions highlights the shifting investment preferences among South Korean investors. As the political situation unfolds, market analysts anticipate a continued shift towards overseas markets and expect the won-dollar exchange rate to remain unstable. The dissatisfaction with the local market trends underscores the need for investors to diversify their portfolios and explore opportunities in global markets.
