South Korea’s crypto market is sending mixed signals. While more people are signing up and depositing funds on exchanges, a massive amount of capital is quietly flowing out of the country.
According to new data from the Financial Services Commission (FSC), crypto outflows from local exchanges surged in the second half of 2025. Investors moved around 90 trillion won (roughly $60 billion) out of domestic platforms — a noticeable jump from 78.9 trillion won ($52.5 billion) recorded in the first half of the year.
The regulator believes a large portion of these funds is heading overseas. In its report, the FSC suggested that traders are shifting assets to foreign exchanges and private wallets, likely to take advantage of price differences and arbitrage opportunities.
More Users, More Deposits — But Less Profit
Interestingly, this outflow trend comes at a time when crypto adoption inside South Korea is still growing.
By the end of 2025, the number of exchange accounts climbed to 11.1 million, marking a 3% increase compared to mid-year figures. Even more striking was the rise in customer deposits, which jumped 31% to reach 8.1 trillion won (around $5.4 billion).
This suggests that while users are actively funding their accounts, many are choosing to move assets elsewhere rather than keeping them on local platforms.
However, this growth in users and deposits hasn’t translated into better financial performance for exchanges.
The country’s 18 active crypto exchanges reported a combined operating profit of 380.7 billion won ($253.4 million) in the second half of the year. That’s a sharp 38% decline from the 617.8 billion won ($411.2 million) recorded in the first half.
Trading Activity Slows Down
Lower profits appear closely tied to reduced trading activity. The FSC estimates that average daily trading volume fell to 5.4 trillion won ($3.6 billion), down 15% compared to earlier in the year.
One major factor behind this slowdown is weakening crypto prices toward the end of 2025. As market momentum cooled, trading interest and exchange revenues took a hit.
Market Value Takes a Dip
The overall crypto market in South Korea also shrank during this period. Total market capitalization stood at 87.2 trillion won (about $58 billion) by the end of 2025 — an 8% decline from the first half.
The broader global market conditions played a role here. After peaking in October 2025, when Bitcoin hit an all-time high of around $126,080, prices began to soften, dragging down valuations across the board.
A Market in Transition
The FSC’s findings highlight a shifting landscape. On one hand, crypto remains popular among South Korean users, with steady growth in participation and deposits. On the other, capital is increasingly moving beyond domestic platforms, and falling prices are squeezing exchange profits.
For now, the trend points to a market that’s still active — but clearly under pressure.
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