South Korea crypto exchange profits fall 78% in H1 2026

What happened

South Korean crypto exchanges posted operating profit of KRW81.6 billion in the first half of 2026, down 78% from KRW374.8 billion in the previous six months, according to Korea Financial Intelligence Unit data. The regulator published the figures on Oct. 1, based on a survey of 26 registered virtual asset service providers, including 17 exchanges and nine custody and wallet businesses, covering Jan. 1 through June 30.

Trading activity fell across the board. Average daily crypto trading volume dropped 44% to KRW3.1 trillion from KRW5.4 trillion. Won-denominated deposits fell 35% to KRW5.2 trillion from KRW8.1 trillion, and the domestic value of crypto held through Korean exchanges dropped 33% to KRW58.9 trillion from KRW87.2 trillion at the end of 2025. Exchange sales declined 41%.

The drop in activity did not show up in account numbers. KoFIU counted 11.175 million tradable accounts at the end of June, up 0.4% from 11.126 million six months earlier. Accounts holding less than KRW1 million in virtual assets increased by 370,000 to 8.63 million, and the most common user age group changed from people in their 30s to those in their 40s.

Why it matters

The figures point to a shift in where South Korean retail investors put their money. In May, the value of crypto held by South Korean investors fell 50.2% to 60.6 trillion won ($41.4 billion) over roughly a year, and Korean outlet ChosunBiz linked the decline to capital moving toward stocks. A Cointelegraph analysis in July found that combined average daily volume across Upbit, Bithumb, Coinone, Korbit and Gopax had fallen about 89% year over year during comparable seven-day periods, while the KOSPI had more than doubled over the 12 months to July 22.

Market structure adds to the picture. Won-based exchanges held KRW58.5 trillion of the country's KRW58.9 trillion domestic crypto value at the end of June, while coin-only exchanges accounted for KRW330 billion, roughly 0.6% of the total. Won-market exchanges generated around KRW3.1 trillion in average daily volume, against KRW380 million on coin-only venues. Volume fell 44% on won platforms and 55% on coin-only venues.

What the data shows

• Operating profit: KRW81.6 billion, down 78% from KRW374.8 billion in the prior half.
• Average daily trading volume: KRW3.1 trillion, down 44% from KRW5.4 trillion.
• Won-denominated deposits: KRW5.2 trillion, down 35% from KRW8.1 trillion.
• Domestic crypto market value: KRW58.9 trillion, down 33% from KRW87.2 trillion at the end of 2025.
• External crypto transfers fell 41%, with whitelisted overseas wallets still accounting for 83% of volume.
• Monthly trading turnover for won-based exchanges ranged from 100% to 201%, against 25% on the KOSPI and 43% on the KOSDAQ.
• Unique crypto assets in circulation fell 5% to 673, while single-exchange listings declined to 234 from 296.

Background

• KoFIU compared the first half of 2026 with the second half of 2025.
• In May, the value of crypto held by South Korean investors fell 50.2% to 60.6 trillion won ($41.4 billion) over roughly a year, which ChosunBiz linked to capital moving toward stocks.
• A Cointelegraph analysis in July found combined average daily volume across Upbit, Bithumb, Coinone, Korbit and Gopax down about 89% year over year in comparable seven-day periods.
• Cointelegraph contacted Bithumb and Upbit operator Dunamu for comment.

What is still unclear

• KoFIU said the figures were compiled from information submitted by the companies and are not classified as official national statistics.
• The reports do not say whether trading activity or exchange profits will recover in the second half of 2026.
• It is not clear from the data why tradable accounts rose 0.4% while average daily volume fell 44%.

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