Korea’s Crypto Craze: Won-derful or Won-derfully Mad?

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Ah, South Korea! Land of kimchi, K-pop, and now, it seems, the crypto-crazed! According to the clever folks at Kaiko, a whopping 30% of all global crypto trades are sloshing about in Won, the Korean currency. That’s right, 52 million Koreans are tossing around $26 billion in crypto every week-more than they spend on soju and ramen combined! (Probably.)

And what’s fueling this frenzy? Well, it’s not just the crypto bug. Korean equities are on a tear too, with the iShares MSCI South Korea ETF (EWY) soaring like a rocket powered by memory chips. Yes, those very chips that make AI go “beep boop” are making investors go “cha-ching!” A 37% return year-to-date? That’s enough to make even the grumpiest investor crack a smile.

Two Exchanges to Rule Them All

Now, if you’re wondering where all this crypto magic happens, look no further than Upbit and Bithumb. These two exchanges are the Hogwarts and Hogwarts of Korean crypto, handling most of the $26 billion weekly turnover. Altcoins are the stars here, with 85% of trades skipping Bitcoin like it’s last year’s fad. Koreans, it seems, have a taste for the wild and volatile-much like their love for spicy food.

But hold your horses! Despite the big numbers, Korean order books are thinner than a politician’s promise. Upbit’s market depth? A mere $1 million to $1.2 million. Meanwhile, Japan’s Bitflyer sits pretty with $3.5 million. Steady Eddie Japan vs. Wild Willy Korea-who’s got it right? Only time will tell.

Japan, on the other hand, trades smaller but steadier, like a tortoise in a race with a hare. Yen-denominated volume? A modest $2 billion to $3 billion monthly across four venues. It’s the retail-driven rollercoaster of Korea versus Japan’s institutional snooze-fest. Choose your adventure!

AI Chips: The New Gold Rush

Meanwhile, Korean tech equities are on a record rally, thanks to the AI memory chip cycle. Samsung and SK Hynix are the kings of high-bandwidth memory (HBM), the secret sauce for AI training systems. These chips are so hot, they’re practically melting the servers. EWY, the ETF darling, is up 37% in Q1 2026, with Samsung and SK Hynix making up 45% of its holdings. That’s not a bet on Korea-it’s a bet on AI, but with a Korean twist!

Options traders are frothing at the mouth, with call open interest on EWY hitting a record $5.5 billion. One analyst quipped, “This isn’t just a Korea bet-it’s a leveraged AI bet through a different door. And that door? It’s made of memory chips.”

“When call open interest explodes like this, it means traders are making MASSIVE leveraged bets that a stock is about to rip higher…This is the kind of positioning that only happens when big players see something coming. And here’s the key part most people miss: Samsung and SK Hynix make up 45% of EWY. Both are at the center of the AI memory chip cycle. This isn’t really a Korea bet, but it’s a leveraged AI bet through a different door,” an analyst commented with a wink and a nudge.

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AI’s Power Hunger: From Korea to Your Electricity Bill

But wait, there’s more! The AI boom isn’t just inflating Korean crypto and tech markets-it’s also jacking up power prices. The Regional Greenhouse Gas Initiative (RGGI) carbon allowances jumped 31% to $47 per metric ton, a four-year high. Why? Because AI data centers are energy hogs, and they’re guzzling power like there’s no tomorrow. Virginia’s reentry into RGGI in July? That’ll just pour fuel on the fire.

AI is driving consumer energy costs higher:

The RGGI carbon price, which covers CO2 emissions from power plants across 10 northeastern US states, jumped +31% last week, to $47 per metric ton, the highest in at least 4 years.

This increase briefly pushed RGGI prices past…

– The Kobeissi Letter (@KobeissiLetter) May 5, 2026

For Korean investors, it’s all connected. The AI demand lifting US power prices is the same demand filling Samsung’s order books, driving EWY call positioning, and fueling Korean crypto venues. It’s a global game of dominoes, and Korea’s right in the thick of it.

Will the Korean Won stay the world’s second-largest fiat-to-crypto market? That depends on how long the AI capex cycle lasts. Keep an eye on Q2 earnings from Samsung and SK Hynix-they’ll tell the tale. Until then, grab your popcorn (or kimchi) and enjoy the show!

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2026-05-05 22:06