Korea Stablecoin Outflows Extend to 18 Months Amid Offshore Demand

South Korea's stablecoin outflows have extended to 18 months, with June's net transfer of 560.3 billion won marking the latest in a sustained trend. The country's five largest won-based exchanges sent 2.7625 trillion won in stablecoins abroad and received 2.2022 trillion won, resulting in a net outflow of 560.3 billion won.

According to data, cumulative net transfers since January 2025 have reached about 14.9 trillion won. In June, the outflows equaled 77.6% of Korean retail investors' net purchases of foreign shares during the month.

The growth in offshore demand for stablecoins is driven by the availability of derivatives, DeFi, staking, and tokenized asset products on overseas platforms. These products have attracted Korean traders, who are increasingly looking beyond domestic exchanges for investment opportunities.

Regulators have expressed concerns about the widening use of stablecoins as collateral and settlement assets in global on-chain markets. Bank of Korea officials have warned that increased token use could complicate capital-flow management and foreign-exchange oversight.