South Korea crypto trading volume falls 44% as exchange profits plunge

South Korean cryptocurrency trading activity experienced a significant downturn in the first half of 2026. According to data from the Korea Financial Intelligence Unit (KoFIU), the average daily trading volume on domestic virtual asset exchanges fell by 44% compared to the previous six months.

The decline has heavily impacted service providers. Combined operating profits for the surveyed exchanges plummeted by 78%, while total sales dropped by 41%. Additionally, the market capitalization of digital assets on these platforms decreased by 33%, and customer deposits held in Korean won fell by 35%.

Despite the drop in volume and value, the number of active trading accounts saw a marginal increase of 0.4%. This suggests that while more individuals hold accounts, they are trading significantly less frequently or in smaller amounts. Analysts suggest this shift may be due to retail investors reallocating capital toward the South Korean stock market, noting that the KOSPI benchmark index has seen substantial growth during a period when crypto holdings have declined.