Sure! Here’s a paraphrased version of the article while retaining the core information and structure:
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<p>For many years, South Korea was at the forefront of cryptocurrency speculation, becoming a hub where digital assets often traded at a premium. Retail investors significantly influenced market movements, and the term <a target="_blank" href="https://www.coindesk.com/markets/2024/12/27/bitcoin-kimchi-premium-spikes-as-south-koreas-political-turmoil-escalates">“Kimchi Premium”</a> embodied a national obsession characterized by frenetic trading activity unparalleled anywhere else.</p>
<p>However, by late 2025, this trend has reversed. The very traders who once searched for the latest altcoin opportunities on Upbit are now focused on the Korean stock market, exchanging meme tokens for stocks in memory chips and high-bandwidth semiconductors. Crypto trading has diminished, giving way to a new speculative landscape.</p>
<h4 class="font-headline-xs font-medium">A Market in Decline</h4>
<p>Upbit, previously the epicenter of Korea’s crypto enthusiasm, is now experiencing a drastic slowdown, with daily trading volumes plummeting by nearly 80% year-over-year. From about $9 billion in late 2024, volumes dipped to roughly $1.8 billion by November 2025. Bithumb, another prominent exchange, has seen similar losses, losing over two-thirds of its liquidity, as reported by <a target="_blank" href="https://wublock.substack.com/p/why-have-koreas-crypto-enthusiaststhe?r=jbpop&utm_campaign=post&utm_medium=web&triedRedirect=true" target="_blank">Wu Blockchain</a>.</p>
<p>The once-popular nightly ritual of trading small-cap coins and following chatroom rumors has largely vanished. Volatility has also decreased significantly; daily trading volumes that once varied from $5 billion to $27 billion are now confined to a stable range of $2 to $4 billion.</p>
<p>Data from <a target="_blank" href="https://dune.com/hashed_official/cex-korea" target="_blank">analytics provider Dune</a> reveals that the decline in trading activity is stark compared to 2018, during the peak of crypto mania when Korean exchanges processed about 280,000 deposits daily. Since 2021, that number hasn’t exceeded 50,000.</p>
<h4 class="font-headline-xs font-medium">A Shift to New Interests</h4>
<p>The absence of crypto activity didn’t linger long; retail investors simply shifted focus to the Korean stock market, which has seen one of its most remarkable rallies ever. The KOSPI index surged over 70% year-to-date, achieving multiple record highs and exceptional gains during October. Fueled by AI-related companies like Samsung Electronics and SK Hynix, these stocks now account for a significant portion of daily trading volume.</p>
<p>In a shift from their previous crypto trading habits, Koreans are now engaged in a similar spirit of speculation but are concentrating their investments in semiconductor stocks. According to <a target="_blank" href="https://www.koreatimes.co.kr/economy/others/20251104/kospi-boom-drives-sharp-rise-in-trading-accounts" target="_blank">Korea Times</a>, the number of active trading accounts has surged from 86.57 million at the year's beginning to 95.33 million by October 31.</p>
<h4 class="font-headline-xs font-medium">Evolving Retail Enthusiasm</h4>
<p>The current equity surge boasts a stable foundation compared to the previous crypto frenzy. AI has emerged as the central theme of global growth, and Korea boasts a critical role in its supply chain. As demand for AI hardware increases, companies like SK Hynix and Samsung are in high demand due to their leadership in key components. Government initiatives aimed at revitalizing domestic markets further contribute to what analysts call a “policy-backed bull run.”</p>
<p>The speculative nature among Korean retail investors remains unchanged; they have merely shifted from crypto to equities. Margin lending is thriving, leveraged ETFs are increasingly popular, and retail participation has doubled in one year. Data from <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-11-05/korea-s-kospi-tumbles-as-valuation-concerns-hit-tech-stocks" target="_blank">Bloomberg</a> indicates that leveraged positions now represent nearly 30% of total holdings, largely driven by younger traders.</p>
<h4 class="font-headline-xs font-medium">Anticipating Future Opportunities</h4>
<p>Though the “Kimchi traders” have stepped back from crypto, history suggests they will return. When interest in AI ebbs or a new crypto narrative emerges, these investors are likely to re-enter the market with renewed capital and vigor. For now, they have traded cryptocurrency for a focus on semiconductors, seeking the same thrill in another playground.</p>
</div>This version maintains the same headings and overall structure while expressing the information in new language.
