South Korea continues to see money flowing out of its local crypto market, as investors move stablecoins to overseas exchanges in search of products and opportunities not available at home.
Key Highlights
- South Korea recorded 560.3 billion won ($367 million) in net stablecoin outflows during June 2026.
- This marks the 18th straight month of more stablecoins leaving the country than returning.
- Korean exchanges sent 2.76 trillion won worth of stablecoins overseas and received 2.20 trillion won back.
- Many investors are believed to be using foreign platforms for derivatives trading, DeFi services, staking, and tokenized real-world asset products.
Stablecoin Outflows Continue
Data from South Korea’s Financial Supervisory Service (FSS) shows that the country’s five largest crypto exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—continued to experience significant stablecoin outflows in June.
During the month, approximately 2.76 trillion won worth of stablecoins was transferred to overseas exchanges, while only 2.20 trillion won returned. This resulted in a net outflow of 560.3 billion won.
The trend has now lasted for 18 consecutive months, with every month since January 2025 showing more stablecoins leaving South Korea than coming back.
Although June’s figure was higher than May’s 477.1 billion won, it remained below January’s peak outflow of 1.14 trillion won.
Why Are Investors Moving Funds Abroad?
The main reason appears to be access to investment products that local exchanges cannot offer.
Foreign platforms provide services such as:
- Crypto futures and leveraged trading
- Tokenized real-world assets (RWAs)
- DeFi lending and yield products
- Crypto staking services
- Trading products linked to major stocks
These options are either limited or unavailable on South Korean exchanges, making overseas platforms more attractive for some investors.
However, regulators have not confirmed exactly how every transferred stablecoin was used. The data only tracks movement between exchanges, not what investors ultimately did with their funds.
Local Trading Activity Is Also Slowing
The outflow trend comes at a time when South Korea’s domestic crypto market is losing momentum.
Trading volume across the country’s five major exchanges fell sharply during the first half of 2026. While that decline may be encouraging investors to look elsewhere, the available data does not prove a direct connection between lower trading activity and rising stablecoin outflows.
Regulators Growing Concerned
Lawmaker Lee Jong-wook warned that more Korean investors are gaining exposure to higher-risk products on overseas exchanges without sufficient protection.
He urged regulators to strengthen investor safeguards and improve oversight as funds continue moving abroad.
Meanwhile, South Korean authorities are working on broader crypto regulations. Officials have discussed:
- Stablecoin rules
- Exchange oversight
- Security requirements
- Investor protection measures
- Digital asset disclosure standards
A comprehensive Digital Asset Basic Act is also being prepared, although many details are still under review.
What Happens Next?
The next set of exchange data will reveal whether July became the 19th consecutive month of net stablecoin outflows.
For now, one thing is clear: South Korean investors continue sending large amounts of stablecoins to overseas platforms, highlighting growing demand for crypto products that remain unavailable in the domestic market.
