[Exclusive] 3 Weeks Into New Government: 'KRW Coin Stocks' Quadruple

Caution Advised as Coin-Related Theme Stocks Rally in Korean Stock Market

13 out of Top 30 Stocks in Price Growth Are Experiencing a 'Frenzy'

Kakao Pay and Me2on Labeled 'Investment Warning'…"Avoid Chase Buying"

KRW stablecoin-themed stocks are experiencing a whirlwind in the domestic stock market. After the inauguration of the Lee Jae-myung administration, nearly half of the top 30 stocks by price increase have been identified as stablecoin-themed stocks. Even though regulations regarding the introduction of KRW stablecoins are not yet clear, some stocks have nearly quadrupled in just three weeks. Critics point out that overheated investor sentiment warrants caution.

On the 24th, analysis by Korea Economic Daily of the share price increases of Korean listed companies from just before the Lee Jae-myung administration took office (the 2nd) until today showed that 13 of the top 30 stocks were categorized as KRW stablecoin-themed stocks. Me2on, a gaming company ranked first in price increase across both KOSPI and KOSDAQ, saw its stock at ₩1,877 on the 2nd, but soared by 289.30% after the presidential election, reaching ₩7,280 today. Although trading was suspended on the 23rd due to the sharp rally, it resumed today and rose another 9.80%. The stock surge has been analyzed as triggered by the recent launch of a casino game platform by its subsidiary, linked to a dollar stablecoin.

Kakao Pay, which had experienced a three-year decline, also soared 143.06% during this period, surpassing its IPO price (₩90,000). Kakao Pay was designated an investment warning stock on the 20th due to a sharp price rise, but in the most recent three trading days, it still shot up another 46.25%, leading to trading suspension for a day. Market observers also name Kakao Pay a primary beneficiary of KRW stablecoin.

Concerns are rising that the market is overreacting, given the government has not released concrete plans for introducing KRW stablecoins. An industry insider commented, "There are plenty of cases where companies with little direct relevance to stablecoins or without substantial technology are seeing soaring stock prices purely due to expectations." They emphasized the need for investors to exercise particular caution.

Sharp Surges Driven by Nothing but Hype…Where Will 'KRW Coin Stocks' End Up?

Mania Despite No Direction or Plans

#1. Kakao Pay’s stock, listed on the KOSPI, was traded at just ₩37,850 as of the 30th of last month. The reversal started after the presidential election on June 3. With President Lee Jae-myung’s victory and his pledge to allow KRW-based stablecoins, the stock quickly rose as a signature beneficiary. This month alone, Kakao Pay’s price has soared by 143.06% and is within reach of ₩100,000. Ultimately, trading was halted for a day on the 24th due to its rapid rise.

#2. Me2on, listed on KOSDAQ and a mobile game company, saw its share price hover around ₩1,000 from the end of last year until the 9th of this month. Within just two weeks, it even spiked into the ₩8,000 range, prompted by the company’s announcement on the 12th of a formal launch of a casino platform based on a stablecoin. The sudden surge led to trading suspension the previous day as well.

◇ Theme Stocks Soaring on Blind Speculation

Following President Lee’s election win, a "theme mania" driven by expectations for KRW stablecoin approval has swept through Korea’s stock market. Stock prices are soaring purely on policy benefit expectations without any verification of technological feasibility or business potential. According to Korea Economic Daily’s analysis as of the 24th, 13 out of the top 30 stocks by price increase since right before the new administration are KRW stablecoin-related, with rises from a minimum of 77.95% up to a maximum of 289.3%. Among these, only three companies—Kakao Pay, LG CNS, and Shinsegae I&C—are listed on the KOSPI, and the remaining 10 are KOSDAQ firms.

Few of these companies are actually preparing for KRW stablecoin business or have concrete technology under development. Companies like Danal (up 109.55%) and Shinsegae I&C (79.69%), primarily engaged in electronic payment, are labeled “theme stocks” on mere speculation. The rally is largely analyzed as stemming from vague expectations that they may take part in infrastructure for KRW stablecoin payments. Aton (122.38%), LG CNS (93.23%), and others are regarded as related stocks for their participation in the Bank of Korea’s CBDC (central bank digital currency) project.

◇ Repeated Suspicions of 'Pump and Dump'

In the market, suspicions are rising that some firms are excessively hyping hope without real substance in order to boost stock prices. For example, on the 17th, Kakao Pay filed 18 trademark applications with the Patent Office for trademarks with ‘K’ and ‘P’ incorporated into 'KRW', symbolizing the company and the currency. Nexuss also announced the application for the 'KRWx' trademark. However, many experts argue that trademark applications alone cannot be seen as substantial technological development or commercialization. A blockchain industry official said, "It is very difficult to find coins on the blockchain that use tickers registered as trademarks by domestic firms. Trademark registration is nothing more than a symbolic move."

Additionally, some KOSDAQ-listed companies have been issuing press releases about entering stablecoin-related MOUs as they attempt to jump on the theme bandwagon. Some are even fueling market anticipation with nothing more than a simple letter of intent, drawing criticism.

◇ Startups Jump on the Bandwagon

It’s not just the stock market. In the startup sector, many are also trying to jump onto the KRW stablecoin trend. The appointment of Kim Yong-beom, who previously worked at an affiliate of Hashed—a venture capital firm specializing in digital assets—as Chief Policy Officer in the Presidential Office has amplified expectations for related policies throughout the industry. An industry source said, "There’s an atmosphere of everyone preparing for related business even though the institutional framework is still unclear."

There is speculation that qualifying banks could be allowed priority, or that participation might be restricted to select companies, which could lead to potential investor losses. A financial authority official stated, "No specific policy direction has yet been determined regarding KRW stablecoin, so investors need to be cautious."

Jin-Sung Kim / Mi-Hyun Cho / Ui-Jin Jeong, Reporters

▶KRW stablecoin: A cryptocurrency pegged 1:1 to the value of the Korean won. If a stablecoin is fixed at ₩1,000, it is used on the blockchain as digital money with a value of ₩1,000.