Stablecoin Outflows from South Korean Exchanges Reach $10.8B in 18 Months

South Korean won-market cryptocurrency exchanges have experienced a cumulative net outflow of approximately 14.9 trillion won ($10.8 billion) in stablecoins over the past 18 months, according to data released by the office of People Power Party lawmaker Lee Jong-wook. The figures, reported by Digital Asset, track transfers from major domestic platforms including Upbit, Bithumb, Coinone, Korbit, and Gopax between January 2025 and June 2026.

Breakdown of Outflows by Exchange

The net withdrawal figures represent the total amount of stablecoins sent to overseas exchanges minus deposits received from those platforms, indicating the actual volume of digital assets leaving the country. Upbit accounted for the largest share, with net outflows of 9.0914 trillion won ($6.6 billion), followed by Bithumb at 2.6502 trillion won ($1.9 billion), Coinone at 2.5662 trillion won ($1.9 billion), Korbit at 604.2 billion won ($437.4 million), and Gopax at 12.5 billion won ($9.1 million).

Monthly Peak and Market Context

The most significant monthly net outflow occurred in February 2025, reaching approximately 1.2049 trillion won ($872.7 million). This spike coincided with a period of heightened volatility in global cryptocurrency markets and increased regulatory scrutiny in South Korea. The sustained outflows suggest a growing preference among domestic traders for international platforms, which often offer a wider range of trading pairs and less stringent regulatory oversight.

Why This Matters for the Crypto Market

These outflows have notable implications for the South Korean crypto ecosystem. They reflect not only the competitive pressures faced by domestic exchanges but also potential challenges in maintaining liquidity and market depth. Moreover, the trend raises questions about the effectiveness of local regulations aimed at keeping crypto activity within the country’s financial system. For traders, the movement of stablecoins abroad may indicate strategies to access better yields, lower fees, or more diverse investment opportunities.

Regulatory and Policy Considerations

The data comes as South Korean authorities continue to refine their approach to digital assets. Lawmakers have been debating stricter rules on stablecoin issuance and custody, while also considering measures to support the domestic industry. The significant capital outflows could influence these policy discussions, as regulators weigh the need for investor protection against the risk of driving more activity offshore.

Conclusion

The $10.8 billion net stablecoin outflow from South Korean won-market exchanges over 18 months highlights a persistent trend that affects market dynamics and regulatory planning. As the global crypto landscape evolves, the movement of these assets will remain a key indicator of the competitiveness and attractiveness of South Korea’s trading environment.

FAQs

Q1: What are stablecoins?
Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged to a fiat currency like the US dollar. They are often used for trading and transferring value without the volatility associated with other digital assets.

Q2: Why are traders moving stablecoins to overseas exchanges?
Reasons include access to a broader range of trading pairs, lower fees, better liquidity, and potentially more favorable regulatory conditions. Some traders also seek to participate in global DeFi platforms or yield-generating opportunities not available domestically.

Q3: How do these outflows affect the South Korean crypto market?
Sustained outflows can reduce liquidity on domestic exchanges, potentially leading to wider spreads and less competitive pricing. They also signal a shift in trading activity that could impact the long-term viability of local platforms and influence regulatory decisions.