Key Takeaways
- • South Korea experienced 14.92 trillion won ($10.5 billion) in net stablecoin outflows across its five major crypto exchanges from January 2025 through June 2026, with outflows exceeding inflows for 18 consecutive months at an average rate of 829.1 billion won monthly, according to Financial Supervisory Service data.
- • First Digital CEO Vincent Chok identifies a product gap rather than a stablecoin gap as the primary driver of capital flight, citing Korean exchanges' concentration on spot trading versus offshore platforms offering perpetual futures, options, decentralized finance, and tokenized real-world assets.
- • Korean investors are actively migrating to decentralized exchanges, with approximately 120,000 Korea-linked wallets funneling $1.64 billion into three decentralized platforms between January 2024 and July 2026, according to Tiger Research and Chainalysis data.
- • Stablecoins function as the practical liquidity bridge enabling Korean investors to access offshore derivatives and alternative products unavailable domestically, rather than serving as the primary investment destination themselves.
Summary
South Korea's persistent outflow of digital assets reflects structural demand for investment products unavailable in the domestic market rather than preference for foreign stablecoins, according to Vincent Chok, CEO and co-founder of First Digital, a digital asset financial services firm and issuer of FDUSD, a dollar-backed stablecoin traded on global markets.
The scale of the outflow is substantial. Financial Supervisory Service data submitted to National Assembly Rep. Lee Jong-wook reveals 14.92 trillion won ($10.5 billion) in net stablecoin transfers from Korea's five major crypto exchanges to overseas platforms between January 2025 and June 2026. The 18-month streak of consecutive monthly outflows—averaging 829.1 billion won per month—signals a sustained, structural pattern rather than temporary trading activity.
Chok's analysis, presented at a National Assembly seminar on stablecoin policy in May 2026, reframes the policy narrative. He argues that Korean crypto exchanges remain predominantly focused on spot trading, while international platforms offer perpetual futures, options, decentralized finance protocols, and tokenized real-world assets—products with significant institutional and retail demand. Stablecoins, in this context, serve as the practical mechanism for moving dollar liquidity to offshore venues where these derivatives and alternative products trade, rather than as the fundamental draw themselves.
This thesis finds empirical support in blockchain data. Tiger Research and blockchain analytics firm Chainalysis tracked approximately 120,000 Korea-linked wallets and documented roughly $1.64 billion flowing into three decentralized exchanges between January 2024 and July 2026. The volume of Korean capital accessing decentralized platforms underscores investor appetite for products and market structures unavailable through regulated domestic exchanges.
The policy implication is direct: introducing a won-denominated stablecoin alone would be insufficient to retain digital asset activity onshore without simultaneously expanding the product ecosystem available to Korean investors. Without perpetual futures, options, DeFi, and tokenized assets accessible through domestic platforms, capital outflows are likely to persist regardless of stablecoin denomination.
The scale of the outflow is substantial. Financial Supervisory Service data submitted to National Assembly Rep. Lee Jong-wook reveals 14.92 trillion won ($10.5 billion) in net stablecoin transfers from Korea's five major crypto exchanges to overseas platforms between January 2025 and June 2026. The 18-month streak of consecutive monthly outflows—averaging 829.1 billion won per month—signals a sustained, structural pattern rather than temporary trading activity.
Chok's analysis, presented at a National Assembly seminar on stablecoin policy in May 2026, reframes the policy narrative. He argues that Korean crypto exchanges remain predominantly focused on spot trading, while international platforms offer perpetual futures, options, decentralized finance protocols, and tokenized real-world assets—products with significant institutional and retail demand. Stablecoins, in this context, serve as the practical mechanism for moving dollar liquidity to offshore venues where these derivatives and alternative products trade, rather than as the fundamental draw themselves.
This thesis finds empirical support in blockchain data. Tiger Research and blockchain analytics firm Chainalysis tracked approximately 120,000 Korea-linked wallets and documented roughly $1.64 billion flowing into three decentralized exchanges between January 2024 and July 2026. The volume of Korean capital accessing decentralized platforms underscores investor appetite for products and market structures unavailable through regulated domestic exchanges.
The policy implication is direct: introducing a won-denominated stablecoin alone would be insufficient to retain digital asset activity onshore without simultaneously expanding the product ecosystem available to Korean investors. Without perpetual futures, options, DeFi, and tokenized assets accessible through domestic platforms, capital outflows are likely to persist regardless of stablecoin denomination.
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