South Korea's Stablecoin Outflows Hit Record High

The net outflow of stablecoins from South Korea's crypto exchanges to overseas platforms has continued for 18 straight months, exceeding $360 million in June. According to data from the Financial Supervisory Service (FSS), the amount transferred to foreign exchanges was nearly 78% of the net purchases of foreign stocks by Korean investors during the same period.

The regulator believes that the funds are being channeled into financial instruments not available on local exchanges, including crypto derivatives trading and products linked to shares of major South Korean companies like Samsung Electronics, SK Hynix, and Hyundai Motor. Tokenized real-world assets (RWA), DeFi, staking services, and high-risk leveraged products are also in demand.

Lawmaker Lee Jong-uk has urged the government to strengthen investor protection and review the regulatory framework, citing concerns that the rise in stablecoin transfers abroad is driving capital outflows and leaving investors without adequate protection when trading risky products on foreign exchanges.