Former crypto traders move to KOSPI 200 amid AI rally

Former crypto traders are reallocating capital to the Korea Composite Stock Price Index (KOSPI 200) on the Hyperliquid platform. Platform data indicates about 63% of KOSPI 200 positions were profitable as of May 5, with open interest in the index near $121,000.

The KOSPI 200 has gained roughly 209% over the past 12 months and rose about 31.84% in the past month. Traders point to heavy exposure to companies supplying AI hardware and recent government policy changes as factors behind increased interest.

Contract-enabled trading venues let users create tokenized representations of equities and indexes. That technical ability has allowed traders who previously focused on tokens to move funds into equity-linked derivatives. Many are using perpetual futures and other derivative structures familiar from crypto markets to take positions on the KOSPI 200.

South Korean policy actions include a 2024 Corporate Value Up program aimed at boosting corporate valuations and investor returns, and a December 2025 cut to dividend taxes from 45% to a range of 13%–30%. Officials framed the measures as intended to reduce a long-standing valuation discount for local stocks.

The index has a significant weighting in semiconductor firms. SK Hynix and Samsung Electronics account for about 42% of the KOSPI 200, giving the index direct exposure to demand for AI chips. The index’s price-to-earnings ratio is approximately 26.41, compared with roughly 23.90 for the Nasdaq and about 30.90 for the S&P 500. Components of the KOSPI 200 are reporting ongoing earnings growth.

Derivatives market data shows equities and stock indexes returning to the ranks of most actively traded assets on contract platforms. Some major U.S. index products are trading volumes close to the largest crypto assets. The KOSPI’s price swings have, at times, been more volatile than Bitcoin, but volatility has not deterred traders using derivative strategies.

Risk factors cited by traders include the threat of hacks, regulatory uncertainty and weak returns in some tokens, which have encouraged moves toward assets with reported earnings. The ability to list equity contracts on the same venues used for crypto trading has facilitated rapid reallocations into stocks tied to the AI sector.

The community trading KOSPI 200 on synthetic and contract-based platforms remains small, though activity has risen as the index set new highs over the past year.