Key facts
- South Korean crypto exchanges saw operating profits fall 78% in H1 2026.
- Average daily trading volume dropped 44% in H1 2026.
- Market capitalization declined 33% in H1 2026.
- Customer deposits fell 35% in H1 2026.
- Exchange sales decreased 41% in H1 2026.
- The value of crypto held by South Korean investors fell 50.2% to 60.6 trillion won ($41.4 billion) over the past year.
South Korean cryptocurrency exchanges experienced a significant downturn in the first half of 2026, with operating profits plummeting by 78% amid a sharp decline in trading activity, market valuations, and customer deposits. The Korea Financial Intelligence Unit (KoFIU) reported on Thursday that average daily trading volume across domestic virtual asset exchanges decreased by 44% compared to the preceding six months. Market capitalization also saw a substantial drop of 33%, while won-denominated customer deposits fell by 35%. Overall exchange sales declined by 41% during the same period, despite a slight 0.4% increase in the number of eligible trading accounts.
The KoFIU's survey encompassed 26 registered virtual asset service providers, including 17 exchange operators and nine custody and wallet providers, covering the period from January 1 to June 30, 2026.
These figures emerge as South Korean retail investors appear to be shifting their focus from cryptocurrencies to the domestic stock market. In May, the total value of crypto assets held by South Korean investors decreased by 50.2% to 60.6 trillion won ($41.4 billion) over approximately one year, a trend that Korean outlet ChosunBiz linked to capital reallocation towards stocks. A separate analysis by Cointelegraph in July indicated that the combined average daily volume across major exchanges like Upbit, Bithumb, Coinone, Korbit, and Gopax had fallen by about 89% year-over-year during comparable seven-day periods. In contrast, South Korea's benchmark stock index, the KOSPI, more than doubled over the 12 months leading up to July 22.