South Korean Crypto Exchanges Suffer 78% Profit Drop Amid Trading Slump
The regulated crypto industry in South Korea posted a sharp earnings contraction in the first half of 2026, with operating profits dropping 78% due to trading volumes, asset valuations, and customer deposits declining. According to a survey by the Korea Financial Intelligence Unit (KoFIU), average daily trading volume at domestic virtual asset exchanges fell 44% versus the prior six-month period.
The same dataset shows market capitalization down 33% and won-denominated deposits decreasing 35%, alongside lower exchange revenue. KoFIU attributes the deterioration to weaker market throughput and contracting customer funds.
Market conditions have cooled since the start of the year, with retail attention shifting toward South Korea's stock market. Earlier reporting highlighted a steep reduction in crypto holdings among South Korean investors, with the value of crypto held by South Korean investors falling 50.2% to 60.6 trillion won (about $41.4 billion) over roughly a year.
The number of accounts eligible to trade increased by 0.4%, but trading volume still fell 44%, deposits dropped 35%, and exchange sales decreased 41%. Investors should focus on whether exchange deposits and trading volumes stabilize in the second half of 2026, and whether the apparent rotation toward stocks continues to drain liquidity.