South Korean crypto exchange operating profits have fallen 78% to KRW81.6 billion in the first half of 2026 as trading volume, customer deposits and the value of crypto held domestically all dropped sharply.
Summary
- South Korean crypto exchange operating profits fell 78% to KRW81.6 billion during 2026’s first half.
- Average daily crypto trading volume dropped 44% to KRW3.1 trillion from KRW5.4 trillion previously nationwide.
- Won deposits fell 35% to KRW5.2 trillion, while tradable accounts edged 0.4% higher overall nationwide.
- Crypto market value held domestically dropped 33% to KRW58.9 trillion by June’s end, KoFIU reported.
- External crypto transfers fell 41%, with whitelisted overseas wallets still accounting for 83% of volume.
The Korea Financial Intelligence Unit reported on Oct. 1 that its survey covered 26 registered virtual asset service providers from Jan. 1 through June 30, including 17 exchanges and nine custody and wallet businesses. The figures were compiled from information submitted by the companies and are not classified as official national statistics.
Why did South Korea crypto exchange profits fall 78%?
Trading activity weakened across the domestic market. Average daily volume dropped 44% to KRW3.1 trillion from KRW5.4 trillion during the second half of 2025, while exchange sales fell 41%. Operating profit declined from KRW374.8 billion to KRW81.6 billion over the same comparison period.
Customer cash available for trading moved lower at the same time. Won-denominated deposits fell 35% to KRW5.2 trillion from KRW8.1 trillion, while the value of crypto held through Korean exchanges dropped 33% to KRW58.9 trillion from KRW87.2 trillion at the end of 2025.
The number of accounts eligible to trade did not fall with those measures. KoFIU counted 11.175 million tradable accounts at the end of June, up 0.4% from 11.126 million six months earlier. The most common user age group changed from people in their 30s to those in their 40s.
Accounts holding less than KRW1 million in virtual assets increased by 370,000 to 8.63 million. The data therefore show more registered accounts at the same time that trading, deposits and exchange income were declining.
Won-based exchanges still control almost the whole market
South Korea’s crypto market remains heavily concentrated on platforms offering Korean won trading. KoFIU found that won-based exchanges held KRW58.5 trillion of the country’s KRW58.9 trillion domestic crypto value at the end of June. Coin-only exchanges accounted for KRW330 billion, equal to roughly 0.6% of the total.
Trading activity showed an even larger difference. Won-market exchanges generated around KRW3.1 trillion in average daily volume, while coin-only exchanges recorded just KRW380 million. Volume fell 44% on won platforms and 55% on coin-only venues compared with the previous half-year period.
A new turnover measure introduced in the survey put monthly trading turnover at between 100% and 201% for won-based exchanges. Coin-only platforms recorded between 2% and 9%. For comparison, KoFIU placed KOSPI monthly turnover at 25% and KOSDAQ at 43% during the first half.
Liquidity concerns were more pronounced among assets listed on only one Korean platform. The number of unique crypto assets in circulation fell 5% to 673, while single-exchange listings declined to 234 from 296.
Those exclusive listings represented only KRW600 billion, or 1% of total domestic crypto value. KoFIU warned that 93 of them, equal to 40%, each had market values of KRW100 million or less, leaving them exposed to low liquidity and sharp price moves.
Did Korean investors move from crypto into stocks?
Separate market data show that the weak first-half exchange figures continued into part of the summer.
Yonhap reported on July 23 that average daily trading across Upbit, Bithumb, Coinone, Korbit and Gopax had fallen to KRW597.8 billion during July through the previous Tuesday. That was equal to just 1.59% of the KRW37.6 trillion average daily turnover on the KOSPI.
Earlier South Korean crypto holdings had fallen by more than half from KRW121.8 trillion in January 2025 to KRW60.6 trillion by February 2026, according to Bank of Korea data cited in May. The report linked part of the decline with stronger demand for domestic stocks.
A separate review of first-half trading on South Korea’s five biggest exchanges put combined volume at $366.58 billion, down 54.6% year over year. Upbit’s share of trading increased even as total activity contracted.
The pattern was not one-way throughout the year. During a Bitcoin rally in August, Upbit’s daily trading volume jumped 273% to $1.84 billion, while Bithumb volume rose 132.9% to roughly $934.9 million. The same report said Upbit’s first-half net profit had fallen 74%, while Bithumb moved from profit to a net loss.
Crypto transfers and custody activity fell too
Activity outside direct exchange trading weakened during the survey period. External transfers from Korean exchanges dropped 41% to KRW62.8 trillion from KRW107.3 trillion in the previous six months. Transfers covered by the travel rule totaled KRW9.5 trillion, or 15%, while whitelisted transfers to approved overseas entities and personal wallets totaled KRW51.7 trillion, or 83%.
Transfers worth less than KRW1 million made up only KRW1.6 trillion, or 2% of total transferred value, but involved 63% of users making external transfers.
Custody and wallet businesses faced their own decline. Customer accounts increased 2% to 792, yet assets held in custody fell 25% to KRW230.4 billion. Operating results deteriorated from a KRW9.3 billion loss during the second half of 2025 to a KRW18.6 billion loss in the first half of 2026.
Exchange staffing was comparatively stable. The sector employed 2,021 people at the end of June, down by 10 from six months earlier, while anti-money laundering staffing edged up by one person to 213.
South Korean traders are scheduled to face a separate regulatory change on Jan. 1, 2027. The government has maintained plans for a 22% tax on annual crypto gains above KRW2.5 million, with tax authorities preparing implementation guidance for domestic exchanges.
