Key Takeaways
- • South Korea's crypto market shrank sharply in the first half of 2026, with market capitalization on domestic exchanges down 33% to 58.9 trillion won, according to a KoFIU survey released October 1.
- • Average daily trading volume fell 44% to 3.1 trillion won, and won deposits held on exchanges dropped 35% to 5.2 trillion won.
- • Users in their 40s have become the largest age group among Korean crypto investors, indicating a shift toward an older investor base.
- • Exchange operating profit fell 78% to 81.6 billion won, while exchange sales dropped 41%, even though eligible trading accounts rose 0.4% to 11.175 million.
- • Crypto's maximum drawdown reached 69% in the period, above KOSPI's 55.1% and KOSDAQ's 31.8%, though this was narrower than the 73% recorded in the second half of 2025.
Summary
South Korea's crypto market contracted significantly in the first half of 2026, according to a half-yearly survey released on October 1 by the Korea Financial Intelligence Unit (KoFIU) and the Financial Supervisory Service. The survey covered 26 registered virtual asset service providers and found that the market is becoming older, quieter, and smaller. Users in their 40s are now the largest age group among investors.
The market capitalization of crypto listed on domestic exchanges fell 33% to 58.9 trillion won, leaving it 28.3 trillion won smaller than in the second half of 2025. Trading activity declined more sharply than valuations. Average daily trading volume dropped 44% to 3.1 trillion won, and won deposits held on exchanges fell 35% to 5.2 trillion won. Both KRW-based exchange service providers and coin-only exchange service providers recorded declines in average daily volume.
Despite the drop in activity, the number of accounts eligible to trade edged up 0.4% to 11.175 million, indicating that users largely stayed on Korean exchanges. Exchange economics, however, deteriorated. Sales across domestic exchanges fell 41%, and combined operating profit declined 78% to 81.6 billion won. The decline extends a trend identified in the second half of 2025, when market capitalization slipped 8% and operating profit fell 38%, although deposits rose 31% during that period.
Price volatility remained elevated. KoFIU measures maximum drawdown as the gap between the highest and lowest price divided by the highest price. Crypto assets on domestic exchanges posted a 69% maximum drawdown in the first half of 2026, compared with 55.1% for KOSPI and 31.8% for KOSDAQ over the same period. The figure eased from 73% in the second half of 2025, suggesting somewhat narrower price swings, though it still exceeded both equity indices. Supplemental coverage also reports that investors have shifted some capital toward domestic stocks and dollar-backed stablecoins amid market uncertainty.
The market capitalization of crypto listed on domestic exchanges fell 33% to 58.9 trillion won, leaving it 28.3 trillion won smaller than in the second half of 2025. Trading activity declined more sharply than valuations. Average daily trading volume dropped 44% to 3.1 trillion won, and won deposits held on exchanges fell 35% to 5.2 trillion won. Both KRW-based exchange service providers and coin-only exchange service providers recorded declines in average daily volume.
Despite the drop in activity, the number of accounts eligible to trade edged up 0.4% to 11.175 million, indicating that users largely stayed on Korean exchanges. Exchange economics, however, deteriorated. Sales across domestic exchanges fell 41%, and combined operating profit declined 78% to 81.6 billion won. The decline extends a trend identified in the second half of 2025, when market capitalization slipped 8% and operating profit fell 38%, although deposits rose 31% during that period.
Price volatility remained elevated. KoFIU measures maximum drawdown as the gap between the highest and lowest price divided by the highest price. Crypto assets on domestic exchanges posted a 69% maximum drawdown in the first half of 2026, compared with 55.1% for KOSPI and 31.8% for KOSDAQ over the same period. The figure eased from 73% in the second half of 2025, suggesting somewhat narrower price swings, though it still exceeded both equity indices. Supplemental coverage also reports that investors have shifted some capital toward domestic stocks and dollar-backed stablecoins amid market uncertainty.
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