South Korea Leads East Asia's Crypto Economy with $449 Billion Boost from AI
South Korea's crypto economy reached an impressive $449.1 billion from July 2025 to June 2026, making it the largest in East Asia, according to a report by Chainalysis. The report, titled "East Asia Crypto Adoption Report: South Korea's AI Trade Comes to Crypto," highlighted that Korea's crypto market grew by 12.3 percent compared to the previous year. Japan, Hong Kong, China, and Taiwan followed with $228.3 billion, $192.2 billion, $176.3 billion, and $140.4 billion respectively.
The growth was driven largely by retail investors, who showed a strong interest in AI-related cryptocurrencies. As Korean investors poured money into AI-focused stocks like Samsung Electronics and SK hynix, they also invested heavily in digital assets linked to AI projects. By June 2026, AI-related cryptocurrencies accounted for about 18 percent of all Korean won-denominated crypto trading, surpassing even payment-related cryptocurrencies like Ripple.
The report noted that Korea's retail-driven market is unique, with AI-related crypto trading shares roughly 19.5 times higher than in Japan. Among the most traded AI-related cryptocurrencies in Korea were Worldcoin ($7.41 billion), Sahara AI ($3.2 billion), Virtuals Protocol ($2.7 billion), Bio Protocol ($2 billion), and NEAR Protocol ($1.7 billion).
Looking ahead, the report suggested that Korea's crypto market could undergo significant changes in 2027. The implementation of a long-delayed 22 percent crypto tax and increased institutional participation could alter the market dynamics, potentially balancing retail activity with more institutional involvement.