South Korea Crypto Trading Slumps as Exchange Profits Fall 78%

South Korean crypto exchanges saw operating profits fall 78% in the first half of 2026 as trading activity, market valuations and customer deposits declined, according to new government data. 

On Thursday, the Korea Financial Intelligence Unit (KoFIU) said average daily trading volume at domestic virtual asset exchanges fell 44% from the previous six months, while market capitalization dropped 33% and won-denominated deposits fell 35%. Exchange sales declined 41% over the same period, even as the number of accounts eligible to trade rose slightly by 0.4%.

KoFIU’s survey covered 26 registered virtual asset service providers, including 17 exchange operators and nine custody and wallet providers, and covered activity from Jan. 1 through June 30.

The figures come amid signs that South Korean retail investors have been shifting attention from crypto to the country’s stock market. 

In May, the value of crypto held by South Korean investors fell 50.2% to 60.6 trillion won ($41.4 billion) over roughly a year. Korean outlet ChosunBiz linked the decline to capital moving toward stocks.

A Cointelegraph analysis in July also found that combined average daily volume across Upbit, Bithumb, Coinone, Korbit and Gopax had fallen about 89% year over year during comparable seven-day periods, while the KOSPI, South Korea’s benchmark stock index, had more than doubled over the 12 months to July 22.

Cointelegraph contacted Bithumb and Upbit operator Dunamu for comment.

Related: South Korea drops Travel Rule threshold for crypto transfers

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