South Korea’s crypto exchanges are having a rough year. Daily trading volumes across the country’s top platforms have cratered 89% year-over-year, dropping from an average of roughly 17 trillion won per day in mid-2025 to approximately 2.7 trillion won, or about $2 billion, by late May and early June 2026. Where did all that money go? Straight into equities. The KOSPI index surged, peaking above 8,800 in mid-2026, powered almost entirely by insatiable demand for semiconductor and AI-related stocks like Samsung Electronics and SK Hynix. A complete reversal of fortunes
Just a year ago, Korean crypto exchanges were routinely outpacing the country’s stock market in daily turnover. In July 2025, exchanges averaged around 17 trillion won in daily volume, comfortably exceeding the KOSPI’s 10 to 15 trillion won average.
Fast forward to today, and crypto volumes represent roughly 2% of KOSPI’s daily turnover. Top exchanges are bleeding revenue as a result. First-quarter 2026 financials showed declines of more than 50% year-over-year for major platforms. The kimchi premium goes negative
Perhaps the most telling indicator of shifting sentiment is what happened to the so-called “kimchi premium,” the price differential that historically made Korean crypto markets more expensive than global counterparts. For years, this premium reflected intense local demand, sometimes pushing Bitcoin and Ethereum prices 5% to 10% higher on Korean exchanges than on Coinbase or Binance. That premium has now flipped negative, a signal that local demand has genuinely evaporated rather than simply cooling off.
South Korea implemented the Virtual Asset User Protection Act in July 2024, introducing stricter regulatory requirements for exchanges and additional safeguards for retail investors. The combination of tighter rules and a roaring stock market created a perfect storm for crypto volume decline.
Not dead, just sleeping
In mid-July 2026, when the KOSPI experienced a roughly 4% intraday correction, trading volumes on Upbit, South Korea’s dominant exchange, spiked over 1,400% in a single day. What this means for investors
For crypto exchanges specifically, the revenue picture is concerning.
A 50%-plus revenue decline in Q1 2026 puts pressure on smaller platforms that lack the balance sheet to weather extended dry spells. The mid-July Upbit spike demonstrates that Korean retail capital has not left the crypto ecosystem permanently, but is currently concentrated in equity positions.
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