South Korea's Crypto Exchange Profits Plummet 78% in H1 2026

South Korea's regulated crypto industry took a significant hit in the first half of 2026, according to government figures released this week. Operating profits at virtual asset exchanges dropped 78% during this period, with average daily trading volume falling by 44%. The total market capitalization declined by 33%, and won-denominated deposits decreased by 35%.

The sharp decline in trading activity coincides with signs that South Korean retail participants are shifting their attention towards the local stock market. The value of cryptocurrencies held by South Korean investors fell 50.2% to 60.6 trillion won over roughly a year, according to ChosunBiz. This shift is attributed to capital moving towards stocks.

The decrease in deposits and valuations highlights the economic pressure on exchanges. A 33% decline in market capitalization indicates that the overall value of assets traded and held within the ecosystem weakened, reducing fee-generating activity even when user bases remain in place.