South Korea's Crypto Exchanges See 78% Profit Plunge Amid Trading Slump

The first half of 2026 saw South Korean crypto exchanges struggle, as operating profits plummeted by 78% year-over-year. The decline in profits is attributed to a significant decrease in trading activity, market valuations, and customer deposits. According to the Korea Financial Intelligence Unit (KoFIU), average daily trading volume at domestic virtual asset exchanges dropped by 44%, while market capitalization fell by 33%. Additionally, won-denominated deposits decreased by 35%.

Exchange sales declined by 41% over the same period, despite a slight increase in the number of accounts eligible to trade. The KoFIU's survey covered 26 registered virtual asset service providers, including 17 exchange operators and nine custody and wallet providers, from January 1 through June 30.

The decline in trading activity is not unique to crypto exchanges. A recent shift towards the stock market has been observed among South Korean retail investors. In May, the value of crypto held by these investors fell by 50.2% to 60.6 trillion won ($41.4 billion) over roughly a year.