South Korean Crypto Exchange Profits Drop 78% in First Half of 2026

Operating profits at South Korean crypto exchanges fell 78% in the first half of 2026 as trading activity, market values and customer deposits all weakened. The Korea Financial Intelligence Unit (KoFIU) released the figures on Thursday. Average daily trading volume dropped 44% from the previous six months, market capitalization fell 33% and won-denominated deposits declined 35%. Exchange sales were down 41%, even though the number of accounts eligible to trade edged up 0.4%.

KoFIU Survey Covers 26 Virtual Asset Providers

The survey looked at 26 registered virtual asset service providers, made up of 17 exchange operators and nine custody and wallet firms, and covered activity from Jan. 1 to June 30.

Korean Retail Investors Shift From Crypto to Stocks

The slump comes as retail investors appear to be moving money toward the domestic stock market. In May, crypto held by South Korean investors fell 50.2% over about a year to 60.6 trillion won, or $41.4 billion, with the drop tied to capital flowing into equities. A July analysis found combined average daily volume across Upbit, Bithumb, Coinone, Korbit and Gopax was down about 89% year over year. Over the same period, the KOSPI, the country’s benchmark stock index, had more than doubled in the 12 months to July 22.