South Korean political crisis pushes crypto trading to $14.59B

As South Korea grapples with political turmoil, local investors are increasingly turning to alternative assets, including cryptocurrency and U.S. stocks, as a hedge against local market instability.

According to Korea Herald, the combined 24-hour trading volume of the top five South Korean crypto exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—reached $14.59 billion as of last Friday afternoon, nearly double the volume of the Kospi index for the same day, which was 10.48 trillion Korean won.

Upbit, the largest exchange, accounted for $11.34 billion of this volume, followed by Bithumb with $3.63 billion.

Smaller exchanges like Korbit and Coinone had volumes of $102 million and $317 million, respectively.

Gopax, another key player, recorded $1.34 million in trading volume.

Amid the political crisis, South Korean investors are shifting their focus to U.S. stocks, particularly Tesla.

The Korea Securities Depository reported that local investors traded $63.49 billion in U.S. shares last month, with Tesla shares becoming a popular choice, reaching transaction volumes of $7.7 billion.

At the same time, the Korean stock market is struggling, with the Kospi index dropping to 2,360.58 and the KOSDAQ index falling 5%.

Analysts suggest that political instability, following President Yoon Suk Yeol's declaration of martial law and subsequent events, is fueling dissatisfaction with local markets.

In response to these challenges, the Korean won also saw significant depreciation against the U.S. dollar, reaching 1,437 won in intraday trading.