South Korea's cryptocurrency market is witnessing a remarkable surge, with 25% of adults now investing in digital assets. This trend has been bolstered by the election of President Lee Jae-myung and the appointment of crypto advocate Kim Yong-beom as policy chief, signaling robust governmental support for digital asset innovation. The proposal to allow small firms to issue stablecoins has further energized the market, despite concerns about potential systemic risks. Stocks linked to stablecoin and digital currency projects, such as Kakao Pay and LG CNS, have experienced significant gains. The Kospi index has risen nearly 30% year-to-date, marking it as Asia's top-performing market in the first half of 2025. Retail investors are increasingly embracing risk, with margin loans reaching 20.5 trillion won. Meanwhile, the Bank of Korea is accelerating the development of its digital won, reflecting the nation's growing confidence in the crypto sector.