Korea Sees Record Stablecoin Outflows Amid Regulatory Loopholes

Rising stablecoin outflows from South Korea's domestic exchanges to overseas platforms have reached a level equivalent to 77.6% of Korean investors' net purchases of overseas stocks, according to data from the Financial Supervisory Service.

The total value of stablecoins transferred from the five major domestic crypto exchanges, Upbit, Bithumb, Coinone, Korbit, and Gopax, to foreign platforms in June was 2.76 trillion won ($3.46 billion), compared to 2.2 trillion won flowing in the opposite direction.

This net outflow of 560.3 billion won is a significant concern for investor protection and foreign-exchange management, as it occurs outside the reach of domestic regulators.

The trend is attributed to the competitive edge of overseas exchanges offering high-risk derivatives, real-world assets (RWA), decentralized finance (DeFi) services, and other products unavailable in Korea, which are driving an influx of retail investors.