Key Takeaways
- • Active trading users on South Korea's five largest crypto exchanges (Upbit, Bithumb, Coinone, Korbit, Gopax) fell to 19.5% in June 2026, down from 35.7% in January 2025—a 45% decline in active participation over 18 months.
- • KYC-verified user accounts declined by over 400,000 in four months (March to June 2026), falling from a peak of 11.56 million to 11.15 million, signaling investor withdrawal from the market.
- • South Korean crypto holdings shrank 54.7% to 56.96 trillion won ($41.3 billion) by end-June 2026, compared to 125.75 trillion won ($91.1 billion) at end-January 2025, reflecting substantial capital reallocation.
- • Exchange deposit balances fell 51% from 10.66 trillion won ($7.7 billion) to 5.22 trillion won ($3.8 billion) over the same period, indicating reduced liquidity and lower engagement.
- • Domestic and overseas equities—including Samsung Electronics and SK Hynix—have become more attractive to South Korean investors than volatile cryptocurrency positions, contributing to the asset class's loss of appeal.
Summary
South Korea's cryptocurrency market is experiencing a marked contraction in user engagement and capital deployment, according to data analyzed by National Assembly lawmaker Lee Jong-wook. The active-user ratio at the country's five dominant exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—declined to 19.5% as of June 2026, meaning fewer than one in five KYC-verified users conducted any trading, swapping, or staking activity during the month. This represents a sharp deterioration from 35.7% in January 2025, demonstrating a sustained loss of investor momentum over an 18-month period.
The pullback extends beyond trading activity to account creation and capital holdings. The total number of KYC-verified users eligible to trade peaked at 11.56 million in March 2026 but contracted to 11.15 million by June—a loss of approximately 410,000 accounts in four months. Total South Korean cryptocurrency holdings declined 54.7% to 56.96 trillion won ($41.3 billion) from 125.75 trillion won ($91.1 billion) in the same comparison period. Exchange deposits, a critical indicator of liquidity and trading intent, fell by 51% to 5.22 trillion won ($3.8 billion) from 10.66 trillion won ($7.7 billion).
Market participants attribute this cooling to competitive pressures from traditional equity markets. The industry reports that cryptocurrencies—historically valued by South Korean retail investors for their high volatility and return potential—have lost relative appeal compared to domestic and international stock markets, particularly large-cap technology names such as Samsung Electronics and SK Hynix. Combined with a prolonged market slump that has dampened both new investor inflows and trading velocity, the shift suggests a structural reallocation of capital away from digital assets toward conventional equities. The data was submitted by South Korea's Financial Supervisory Service and reported by Busan Ilbo on August 3, 2026.
The pullback extends beyond trading activity to account creation and capital holdings. The total number of KYC-verified users eligible to trade peaked at 11.56 million in March 2026 but contracted to 11.15 million by June—a loss of approximately 410,000 accounts in four months. Total South Korean cryptocurrency holdings declined 54.7% to 56.96 trillion won ($41.3 billion) from 125.75 trillion won ($91.1 billion) in the same comparison period. Exchange deposits, a critical indicator of liquidity and trading intent, fell by 51% to 5.22 trillion won ($3.8 billion) from 10.66 trillion won ($7.7 billion).
Market participants attribute this cooling to competitive pressures from traditional equity markets. The industry reports that cryptocurrencies—historically valued by South Korean retail investors for their high volatility and return potential—have lost relative appeal compared to domestic and international stock markets, particularly large-cap technology names such as Samsung Electronics and SK Hynix. Combined with a prolonged market slump that has dampened both new investor inflows and trading velocity, the shift suggests a structural reallocation of capital away from digital assets toward conventional equities. The data was submitted by South Korea's Financial Supervisory Service and reported by Busan Ilbo on August 3, 2026.
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