# South Korean cryptocurrency market decline

> Live situation record from CLSTR: https://clstr.news/situations/south-korean-cryptocurrency-market-decline
> Updated: 2026-10-04T08:34:33.000Z. Sources: 7. Developments: 2.

South Korean cryptocurrency trading activity has experienced a significant downturn. Data from the first half of 2026 indicated that average daily trading volume on domestic virtual asset exchanges fell by 44% compared to the previous six months. This decline led to a 78% plunge in combined operating profits for surveyed exchanges, a 41% drop in total sales, and a 33% decrease in digital asset market capitalization.

While the number of active trading accounts saw a marginal increase of 0.4%, analysts suggested retail investors may be reallocating capital toward the growing KOSPI stock market. 

More recent data for the week ending October 2 shows a continued contraction, with trading volume across five major exchanges—Upbit, Bithumb, Coinone, Digital X, and Gopax—falling by approximately 19.56%. Despite the volume decrease, market shares shifted slightly; Upbit’s share dropped to 64.04%, while Bithumb’s share rose to 26.66%.

## Timeline

### 2026-10-04: South Korea crypto trading volume drops 20% in one week

South Korea’s top five crypto exchanges saw weekly trading volumes drop nearly 20% to 20.5 trillion won, despite high activity in specific altcoins like Dolphin and Worldcoin.

5 sources. https://clstr.news/cluster/south-korea-crypto-trading-volume-drops-20-in-one-week

### 2026-10-02: South Korea crypto trading volume falls 44% as exchange profits plunge

South Korean crypto trading volume fell 44% in the first half of 2026, causing exchange profits to plunge 78% as investors shift focus toward the domestic stock market.

2 sources. https://clstr.news/cluster/south-korea-crypto-trading-volume-falls-44-as-exchange-profits-plunge

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Cite as: South Korean cryptocurrency market decline. CLSTR, https://clstr.news/situations/south-korean-cryptocurrency-market-decline