Why has South Korea's crypto trading volume fallen?

South Korea's crypto market has slowed as retail investors shift money into equities during the Kospi's record-breaking rally. Daily trading volumes on the country's major crypto exchanges have dropped significantly compared with activity in the stock market.

How strong is the Kospi rally compared with crypto trading activity?

The Kospi reached a record intraday high of 8,874.16 and closed at an all-time high of 8,788.38. Daily stock market turnover exceeded 100 trillion won, while the combined trading volume of Korea's five largest crypto exchanges averaged just 2.7 trillion won.

Why are Korean investors moving from crypto into stocks?

Strong gains in South Korean equities, particularly technology stocks, have attracted retail capital. At the same time, bitcoin has retreated from its 2025 highs, while geopolitical uncertainty and enthusiasm for AI-related stocks have reduced investor interest in cryptocurrencies.

How does current crypto trading compare with the 2025 boom?

The difference is significant. In July 2025, combined daily trading volume on Korea's top five crypto exchanges reached about 17 trillion won, exceeding the Kospi's average daily turnover of 10 trillion to 15 trillion won during that period.

What does the negative kimchi premium mean for bitcoin demand in South Korea?

The kimchi premium measures the difference between Korean and overseas crypto prices. Bitcoin was trading at a 2.8% discount in South Korea, suggesting weaker local demand and reduced speculative activity compared with previous bull market periods.

How close is Samsung Electronics to bitcoin in market value?

Samsung Electronics reached a market capitalisation of 2,040.35 trillion won, equivalent to about $1.36 trillion. That puts it relatively close to bitcoin's estimated market value of $1.47 trillion, highlighting the strength of South Korea's equity rally.

Why does Samsung Electronics approaching bitcoin's value matter?

The comparison illustrates how much investor sentiment has shifted toward equities. Samsung's rapid rise in market value reflects strong demand for AI and semiconductor-related stocks, while bitcoin's market capitalisation has stagnated following its decline from peak levels.

How has the slowdown affected South Korean crypto exchanges?

Major South Korean crypto exchanges reported first-quarter revenue declines of more than 50% from a year earlier. Lower trading volumes reduce transaction fee income, which is the primary revenue source for most exchanges.

Image for illustrative purposes only. Not a real photo.

Kospi rally cools Korea crypto trading

Written by Brie CarterPublished Jun. 2 2026Last Updated Jun. 2 2026

South Korea's cryptocurrency market has slowed markedly as retail investors shift funds into equities, with the Kospi reaching fresh record highs while crypto trading activity weakens.

The benchmark Kospi hit an intraday record of 8,874.16 before closing at an all-time high of 8,788.38 on Monday, with daily turnover exceeding 109 trillion won as investors piled into stocks.

Combined 24-hour trading volume across the country's five largest cryptocurrency exchanges averaged just 2.7 trillion won, accounting for only 2% of Kospi turnover and highlighting the scale of the rotation into equities.

Investor appetite for digital assets has been dampened by bitcoin's decline from last year's peak, alongside geopolitical uncertainty and continued enthusiasm for AI-related stocks.

“Strong gains in the domestic stock market have drawn funds away from cryptocurrencies, resulting in weaker trading activity in the virtual asset market,”

An official from a local crypto exchange said.

The shift marks a sharp reversal from July 2025, when combined trading volume on South Korea's leading crypto exchanges reached about 17 trillion won and exceeded average daily turnover on the Kospi.

The weakening demand has also erased the traditional kimchi premium, with bitcoin trading at a 2.8% discount in South Korea, while Samsung Electronics' market value climbed to $1.36 trillion, narrowing the gap with bitcoin's $1.47 trillion capitalisation and reflecting the strength of the country's equity rally.

At the time of reporting, Bitcoin price was $70,848.23.