South Korea's Stablecoin Exodus Tops $10 Billion

South Korea's stablecoin outflow issue has reached critical levels, prompting regulatory concerns and suggestions for a domestic won-pegged stablecoin. Over 18 months, the net outflows of stablecoins from five major exchanges totaled $10.4 billion, approximately ₩14.92 trillion.

This figure is comparable to the nation's entire overseas stock investment within the same timeframe. The data provided by South Korea's Financial Supervisory Service shows that investors are converting Korean won into dollar-pegged stablecoins like USDT or USDC before transferring them to offshore platforms.

Investors in South Korea seek access to higher leverage and financial offerings largely unavailable on domestic exchanges due to regulatory restrictions. By converting their won into stablecoins, they gain access to a broader range of financial products that appeal to their risk appetite.