CryptoQuant CEO Ki Young Ju has voiced serious concerns about South Korea’s economic instability, warning that ineffective financial policies could prompt crypto businesses and investors to leave the country.
Ju underlined in a Dec. 19 article on X the difficulties facing South Korea’s economy, especially the declining value of the Korean Won (KRW) and the unattractiveness of domestic assets. “Domestic assets, including the Korean Won, are not attractive at all,” Ju said, disparaging government efforts to stabilise the currency as basically useless.
Ju underlined how the fast increase of the KRW together with more general economic uncertainty has worsened the situation. He cited as alarming evidence the USDT value on Upbit, a main South Korean exchange, aligning with the International Monetary Fund (IMF) rate.
Comparatively evaluating the KRW with foreign currencies depends critically on the global benchmark for evaluating currency value, the IMF rate. Declining confidence in the national currency results when USDT, a dollar-pegged stablecoin, equals the IMF rate on local platforms like Upbit. This alignment implies that stablecoins might be sought by investors as a counterpoint against KRW volatility.
Ju cautioned that businesses and individuals moving assets overseas to guard against devaluation and inflation could be a forerunner to capital flight. Such a change could cause greater instability in South Korea’s financial sector, therefore erasing national economy confidence in the KRW.
Furthermore, the phenomena can make South Korea less attractive to foreign investors, therefore upsetting world commerce and investment. Ju demanded quick reforms and pushed the government to design an atmosphere that draws money instead of imposing tight policies meant to keep it. Ju argued, supporting less restrictions and greater incentives to keep investors, “The government should not forcefully hold on to capital that is fleeing overseas.”
Having run CryptoQuant in South Korea for seven years, Ju voiced mounting annoyance with the government’s policies and hinted at perhaps moving his company. “I have been living as a domestic corporation for seven years, but right now I am considering leaving Korea. He said, “It’s so annoying.” His comments capture more general worries about the economic direction of the nation and its capacity to handle the present crisis.
Political unrest deepens financial difficulties.
Severe political turbulence has exacerbated South Korea’s economic challenges. President Yoon Suk Yeol instituted martial law in December 2024, which set off mass demonstrations and finally resulted in his impeachment by the National Assembly. The Constitutional Court is currently considering his retention in office.
Financial institutions have been severely affected by political unrest. With the KOSPI index—the benchmark index monitoring South Korean companies—falling 2.5% since Dec. 3, the day martial law was announced, the stock market has shown increasing volatility. Reflecting negative trend, the KOSPI as of December 19 is trading at 2,435.93.
Not exempt even are big companies like Samsung Electronics. Now trading at 53,101 KRW, the worldwide tech behemoth has seen a 9.3% drop in stock value. The KRW keeps declining as well; it reached a 15-month low of 1,448.9 against the US dollar.
Businesses and people are looking more and more for ways to protect their assets by shifting them abroad in view of the deteriorating political and economic surroundings. This increasing tendency underlines the lack of faith in South Korea’s capacity for crisis management.
The Future Road Ahead
The long-term effects on South Korea’s financial institutions and companies are yet unknown while it works through political and economic crisis. Although the administration has tried to solve the matter, its actions have not yet given confidence or stability.
Businesses like CryptoQuant might eventually have to move in search of more consistent surroundings. Determining South Korea’s economic future will depend critically on whether the required reforms can be carried out to keep its companies and investors.
