Young Koreans are no longer investing in cryptocurrencies, instead they are buying Samsung and SK Hynix stocks! Are they copying Taiwan's "TSMC faith"?

Korea’s cryptocurrency exchange Upbit’s trading volume has plummeted 80% compared to the same period in 2024. Young Koreans who once stayed up all night discussing altcoins in Kakao Talk groups are now talking about AI semiconductor concept stocks. Samsung Electronics’ stock price has surged nearly fourfold since early 2025, and SK Hynix has soared sixfold. The KOSPI index has broken the 6,000-point mark for the first time in history. This scene inevitably reminds people of TSMC’s miracle.
(Background: SK Hynix warns of “Nvidia bubble”: If AI investments don’t profit, the industry could collapse overnight)
(Additional context: Cryptocurrency holding premiums are declining; Bitcoin “reserve companies” have been overshadowed by US stock IPOs)

Table of Contents

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• The “Gemini” miracle of Samsung and Hynix
• Taiwan retail investors’ “National Shield Mountain”
• Same belief, different starting points

Open the investment group on Korea’s largest social platform Kakao Talk, and you’ll find Korean investors quietly revolutionizing.

A year ago, discussions were dominated by “Which coin will list on Upbit” and “When will airdrops arrive.” Now, they are replaced by topics like “Hynix HBM capacity utilization” and “Samsung Q1 revenue outlook.” Popular topics on Naver forums have shifted from altcoins to AI semiconductor concept stocks.

An entire generation in Korea has collectively shifted.

Data speaks volumes: Upbit, Korea’s largest crypto exchange, has seen an 80% drop in trading volume compared to 2024. The activity on Bitcoin-Korean won trading pairs is far below previous years.

Meanwhile, retail investors in Korea bought stocks worth 597.5 billion KRW on the first trading day of the new year, almost all concentrated in Samsung Electronics and SK Hynix.

The “Gemini” miracle of Samsung and Hynix

Numbers alone tell the story.

Since early 2025, SK Hynix’s stock price has surged about six times, and Samsung Electronics has nearly quadrupled. The combined market value of these two companies has reached $1.32 trillion, accounting for 35% of the KOSPI total market cap. Driven by this, the KOSPI index broke through 6,000 points for the first time in history, taking only 34 days to rise from 5,000 to 6,000 — the shortest thousand-point jump in nearly four decades.

By 2026, Korea’s stock market has gained over 44% in total, surpassing France and Germany to become the ninth-largest stock market in the world. The core driver of this growth is the explosive demand for high-bandwidth memory (HBM) driven by AI. Samsung and SK Hynix together control about 80% of global HBM capacity, directly benefiting from the AI infrastructure boom in a seller’s market with memory shortages.

The Korean government has quickly added fuel to the fire. The Financial Services Commission has approved leveraged ETFs of Samsung Electronics and SK Hynix, with 2x leverage, expected to launch mid-year, aiming to bring back retail funds flowing overseas. Last month alone, 167,000 investors completed leveraged ETF education courses, a 19-fold increase from the same period last year.

Korean workers in their thirties say in media interviews, “This will change how I invest.”

Taiwan retail investors’ “National Shield Mountain”

Turning to Taiwan, a startling parallel universe appears.

Long-term holders of TSMC and day traders alike, Taiwanese investors have been actively trading since fractional shares began mid-2020. Over 900,000 people now hold fractional shares of TSMC (stock code 2330). With just 600 NTD, anyone can become a shareholder, transforming TSMC from a favorite of institutional investors into an entry-level stock for young generations. In Taiwan, TSMC is more than just a stock; it’s a symbol of identity—akin to “I also have an EasyCard.”

TSMC dominates over 90% of the global advanced process market and enjoys near-monopoly status in AI chip foundry services.

In 2026, driven by an expected 25% revenue growth, Taiwanese listed companies are projected to see an 18% increase in profits. To some extent, Taiwanese retail investors’ buying of TSMC mirrors Koreans’ investment in Samsung and Hynix: “Our strongest company, riding the AI wave.”

Same belief, different starting points

But a closer look reveals a fundamental difference.

Taiwanese youth are a “buy-and-hold” generation. Since the fractional share system launched, 20-40-year-olds account for nearly 35% of daily trading volume. For them, TSMC is a stock they’ve been regularly investing in since student days, part of their retirement plan. Their belief has been accumulated over time.

Korean youth, on the other hand, are a “defector” generation from crypto. They experienced the meme coin craze of 2021, the Luna/FTX collapses of 2022, and the brief revival in 2024. Finally, during the crypto winter of 2025-2026, scarred and skilled in trading, they collectively turned to the stock market. This isn’t gradual asset allocation but a mass escape.

They even continue their crypto trading habits on-chain. In mid-February, Lighter Exchange launched the world’s first Korean stock on-chain perpetual contracts, including Samsung Electronics and SK Hynix, with leverage up to 10x. Subsequently, Trade XYZ also followed suit. Infrastructure once used for crypto trading is now leveraged for bullish bets on Korean semiconductors.

But both Korean and Taiwanese markets share the same risks:

• Korea’s Samsung + Hynix account for 35% of KOSPI’s total market cap; Taiwan’s TSMC alone accounts for over 30% of the Taiwan stock market.
• Both markets’ fates are highly tied to the assumption that “AI demand will not stop,” as traditional industries have already declined.
• If AI capital expenditure slows or memory/chip cycles turn downward, both markets could face severe corrections.

SK Group Chairman Chey Tae-won warned last year: “If AI investments fail to generate returns, the entire industry could collapse overnight.” This warning applies equally to Samsung, Hynix, and TSMC.

Korean youth are emerging from the crypto ruins, shifting their focus to where the money is—betting on Samsung and Hynix. Taiwanese youth are building their “National Shield Mountain” little by little with monthly fractional shares.

Will the AI surge turn into a major stock market crash? History offers no clear answer.