Korean Investors Cashed Out This Year, BOK Says: Global Implications

Core Insights - The Bank of Korea's Financial Stability Report indicates a behavioral shift among Korean crypto investors from aggressive accumulation to strategic profit-taking, impacting global market dynamics [1] - Despite Bitcoin surpassing $100,000, Korean investors are cashing out rather than increasing their positions [1] Trading Activity - South Korea has a significant presence in global cryptocurrency markets, with Korean won trading pairs often ranking among the top two fiat currencies by volume [2] - The crypto turnover rate in Korea is 156.8%, higher than the global average of 111.6%, but the nature of trading has shifted towards profit-taking [3] Market Concentration - The top 10% of investors accounted for 91.2% of total trading volume from 2024 to June 2025, raising concerns about potential price manipulation [4] - The market is dominated by retail traders due to regulatory restrictions that limit corporate and foreign participation [5] Global Impact - Korean trading activity has historically influenced global markets, with exchanges like Upbit and Bithumb ranking high in volume during bull runs [6] - The current trend of profit-taking among Korean investors may be contributing to a slower pace in the 2025 rally compared to previous cycles, reducing buying pressure in global order books [7]