South Korea Crypto Trading Volume Falls To 8% Of KOSPI Activity As Equity Market Surges

by
Alisa Davidson

Printed: Could 27, 2026 at 9:20 am Up to date: Could 27, 2026 at 9:20 am

by Anastasiia O

Edited and fact-checked:
Could 27, 2026 at 9:20 am

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South Korea’s cryptocurrency market has undergone a dramatic reversal of fortunes, with buying and selling volumes on the nation’s 5 licensed digital asset exchanges now accounting for simply 8% of the benchmark KOSPI inventory index’s buying and selling exercise — lower than one-tenth of fairness market ranges — in line with new knowledge revealed by business outlet Digital Asset.

The figures mark a stark distinction to the euphoric highs of late 2024. In December 2024, won-based crypto buying and selling quantity reached 323% of KOSPI quantity, fuelled by a robust digital asset rally linked to Donald Trump’s U.S. presidential election victory, when Trump declared his intention to make America the world’s capital of digital property. Lower than 18 months later, that dominance has all however evaporated.

The turning level got here within the second half of 2025. Between August 2025 and Could 2026, won-based crypto buying and selling quantity fell 71%, whereas KOSPI buying and selling quantity surged 243% over the identical interval, pushed by a semiconductor growth and government-led efforts to assist the home fairness market. The KOSPI began 2025 at round 2,400 and broke via 6,300 in February 2026 — greater than doubling in simply over a 12 months.

The dimensions of the crypto market’s contraction is critical. South Korean crypto property dropped from 121.8 trillion received ($83.3 billion) on the finish of January 2025 to simply 60.6 trillion received ($41.4 billion) by February 2026, whereas each day buying and selling volumes shrank from roughly $11.6 billion in December 2024 to round $3 billion. Received deposits held on the 5 main exchanges — Upbit, Bithumb, Korbit, Coinone, and Gopax — additionally declined, falling from 10.7 trillion received on the finish of 2024 to roughly 7.8 trillion received in early 2026.

Regulation and Weak Investor Sentiment Add Additional Strain

The weak point will not be solely relative to home shares but in addition to world crypto markets. The so-called “Kimchi Premium” — an indicator measuring the value distinction between Bitcoin traded in South Korea versus abroad — has been persistently adverse since March 2026, briefly turning constructive in April earlier than falling again under zero. A adverse studying indicators that home Bitcoin costs are decrease than worldwide ranges, pointing to weak shopping for strain amongst Korean traders.

The influence has been felt erratically throughout the business. Smaller platforms have suffered most, with Coinone and Korbit recording buying and selling quantity declines of roughly 78% and 92% respectively since February 2025, whereas bigger platforms like Upbit and Bithumb, which profit from deeper liquidity and a wider vary of listed tokens, have confirmed extra resilient.

Trying forward, the outlook for South Korea’s crypto sector faces additional headwinds. Monetary authorities plan to introduce stricter anti-money laundering guidelines in August 2026, below which transactions exceeding 10 million received involving overseas exchanges or personal wallets will robotically set off suspicious transaction studies. The Finance Ministry has additionally confirmed plans to implement a 22% tax on crypto good points beginning January 1, 2027, including additional uncertainty for traders.

The confluence of a booming inventory market, tightening regulation, and subdued world crypto sentiment has basically shifted South Korea’s retail funding panorama — at the least for now.

Alisa, a devoted journalist on the MPost, focuses on crypto, AI, investments, and the expansive realm of Web3. With a eager eye for rising traits and applied sciences, she delivers complete protection to tell and have interaction readers within the ever-evolving panorama of digital finance.

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