Key Highlights:
- Circle Internet Group has emerged as the most-coveted foreign stock in South Korea, with almost $450 million invested by retail traders.
- Since launching on June 5, Circle’s stock value has increased by more than 500%, temporarily reaching a $77 billion market capitalization.
- The surge in demand for Circle shares coincides with South Korea’s expedited process in initiating stablecoin reforms, bolstered by local fintech successes like KakaoPay.
New York-listed Circle (CRCL) stands out as a top investment point this June. Retail investors in South Korea have channeled nearly $450 million into Circle’s shares, making it the top overseas investment this month and a leading choice for the year. The shift is reflective of retail enthusiasm for stablecoins, especially as regulations are set to change under newly-elected President Lee Jae Myung, aiming to legitimize Korean won-backed stablecoins and facilitate digital currency issuance by fintech giants like KakaoPay.
The attraction to Circle aligns with a broader trend in South Korea, where fervent trading behaviors have previously impacted local and global cryptocurrency markets, evidenced by the ‘Kimchi premium’ phenomenon, where local prices reflect a significant trader demand, often escalating prices by 10% to 20% over global rates.
