Why did South Korea's retail cryptocurrency trading volume decline in early 2026?

South Korea's retail cryptocurrency trading volume fell 28% year-on-year to US$69 billion in the first quarter of 2026. Analysts said investors shifted capital from cryptocurrencies to AI-related semiconductor stocks listed on the KOSPI.

What does the US$69 billion trading volume mean for South Korea's crypto market?

South Korea recorded US$69 billion in retail cryptocurrency trading volume during the first quarter of 2026 despite the annual decline. The total kept the country ranked as the world's second-largest retail crypto market.

How does South Korea compare with other countries in retail crypto trading?

South Korea recorded US$69 billion in retail crypto trading volume, behind the United States at US$212 billion. Russia followed with US$48 billion, while India and Turkey recorded US$46 billion and US$40 billion respectively.

What are analysts saying about AI stocks and cryptocurrency demand in South Korea?

Analysts said AI-related semiconductor stocks attracted retail investors seeking stronger returns than major cryptocurrencies. The report noted that some KOSPI-listed semiconductor shares recorded larger daily gains than leading digital assets.

What does the decline mean for South Korea's cryptocurrency market position?

South Korea remained the second-largest retail cryptocurrency market globally despite the 28% decline in trading volume. The data suggests retail participation remains significant even as investor preferences shift toward domestic equities.

Image for illustrative purposes only. Not a real photo.

South Korea crypto trading falls 28%

Written by Mahathir BayenaPublished Jun 17, 2026, 5:33 AM

South Korean retail crypto trading volume fell 28% year-on-year to US$69 billion in the first quarter of 2026.
The country remained the world's second-largest retail crypto market behind the United States.
Analysts said investor funds shifted toward AI-related semiconductor stocks that delivered stronger returns.

South Korea's retail cryptocurrency trading volume fell 28% year-on-year to US$69 billion in the first quarter of 2026, according to data from TRM Labs.

Despite the decline, South Korea ranked second globally for retail crypto trading activity, behind the United States with US$212 billion in volume.

“Analysts attribute the slowdown in crypto enthusiasm largely to the domestic stock market, where AI-driven semiconductor stocks have drawn substantial retail capital away from cryptocurrencies and shifted risk appetite,” according to TRM Labs data cited by ME News.

Russia ranked third with US$48 billion in retail crypto trading volume, followed by India at US$46 billion and Turkey at US$40 billion.

Analysts said the shift in investor capital reflects stronger performance from some AI-related semiconductor shares, and following the report there was no immediate market reaction available for major cryptocurrency assets.

The report indicated that retail investors have increasingly focused on domestic equity opportunities as AI-related themes gained momentum in South Korea's stock market.

According to the analysis, daily gains in some KOSPI-listed semiconductor stocks exceeded those recorded by major cryptocurrencies during the period.