South Korea crypto exchange profits fall 78% in H1 amid trading slump
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
South Korean crypto exchanges experienced a 78% drop in operating profits during the first half of 2026, driven by declines in trading activity, market valuations, and deposits. According to data from the Korea Financial Intelligence Unit (KoFIU), average daily trading volume decreased by 44%, market capitalization by 33%, and won-denominated deposits by 35%. The number of accounts eligible to trade rose slightly by 0.4%, but overall exchange sales fell 41%.
Why it matters
The data highlights a significant contraction in South Korea’s crypto market, signaling a shift in investor behavior and reduced engagement with virtual assets. The source suggests this decline coincides with retail investors redirecting capital from crypto to the country’s stock market. No additional impact analysis was provided.
Key context
KoFIU’s survey covered 26 registered virtual asset service providers from January 1 to June 30, 2026, including 17 exchange operators and nine custody and wallet providers. The value of crypto held by South Korean investors dropped 50.2% over roughly one year to 60.6 trillion won ($41.4 billion). Separate analysis found that average daily trading volume across major exchanges tumbled about 89% year over year, while the KOSPI stock index more than doubled during the same period.
Key numbers and entities
The Korea Financial Intelligence Unit (KoFIU), Upbit, Bithumb, Coinone, Korbit, Gopax, Dunamu (Upbit operator), ChosunBiz, KOSPI index, and figures such as a 78% profit fall, 44% volume drop, 33% market cap drop, 35% deposit decline, 41% sales decline, and 0.4% increase in eligible accounts.
What remains unclear
The source does not specify the precise causes behind investors shifting to stocks or the detailed financial health of individual exchanges. It also lacks commentary from exchange operators and does not discuss future outlooks or regulatory responses in detail.