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Vera SEARCH Searching... South Korea’s crypto trading volume drops 89% as KOSPI surges 114% Retail investors are
chasing semiconductor and AI stocks instead of tokens, and Korean crypto exchanges are feeling the pain Share Add us on
Google by Editorial Team Jul. 22, 2026 South Korea’s crypto exchanges are having a rough year. Daily trading
volumes across the country’s top platforms have cratered 89% year-over-year, dropping from an average of roughly
17 trillion won per day in mid-2025 to approximately 2.7 trillion won, or about $2 billion, by late May and early June
2026. Where did all that money go? Straight into equities. The KOSPI index surged, peaking above 8,800 in mid-2026,
powered almost entirely by insatiable demand for semiconductor and AI-related stocks like Samsung Electronics and SK
Hynix. A complete reversal of fortunes Just a year ago, Korean crypto exchanges were routinely outpacing the
country’s stock market in daily turnover. In July 2025, exchanges averaged around 17 trillion won in daily volume,
comfortably exceeding the KOSPI’s 10 to 15 trillion won average. Fast forward to today, and crypto volumes
represent roughly 2% of KOSPI’s daily turnover. Advertisement Top exchanges are bleeding revenue as a result.
First-quarter 2026 financials showed declines of more than 50% year-over-year for major platforms. The kimchi premium
goes negative Perhaps the most telling indicator of shifting sentiment is what happened to the so-called “kimchi
premium,” the price differential that historically made Korean crypto markets more expensive than global
counterparts. For years, this premium reflected intense local demand, sometimes pushing Bitcoin and Ethereum prices 5%
to 10% higher on Korean exchanges than on Coinbase or Binance. That premium has now flipped negative, a signal that
local demand has genuinely evaporated rather than simply cooling off. South Korea implemented the Virtual Asset User
Protection Act in July 2024, introducing stricter regulatory requirements for exchanges and additional safeguards for
retail investors. The combination of tighter rules and a roaring stock market created a perfect storm for crypto volume
decline. Not dead, just sleeping In mid-July 2026, when the KOSPI experienced a roughly 4% intraday correction, trading
volumes on Upbit, South Korea’s dominant exchange, spiked over 1,400% in a single day. What this means for
investors For crypto exchanges specifically, the revenue picture is concerning. A 50%-plus revenue decline in Q1 2026
puts pressure on smaller platforms that lack the balance sheet to weather extended dry spells. The mid-July Upbit spike
demonstrates that Korean retail capital has not left the crypto ecosystem permanently, but is currently concentrated in
equity positions. Disclosure: This article was edited by Editorial Team. For more information on how we create and
review content, see our Editorial Policy. MARKETS South Korea’s crypto trading volume drops 89% as KOSPI surges
114% Retail investors are chasing semiconductor and AI stocks instead of tokens, and Korean crypto exchanges are feeling
the pain by Editorial Team Jul. 22, 2026 Share Add us on Google South Korea’s crypto exchanges are having a rough
year. Daily trading volumes across the country’s top platforms have cratered 89% year-over-year, dropping from an
average of roughly 17 trillion won per day in mid-2025 to approximately 2.7 trillion won, or about $2 billion, by late
May and early June 2026. Where did all that money go? Straight into equities. The KOSPI index surged, peaking above
8,800 in mid-2026, powered almost entirely by insatiable demand for semiconductor and AI-related stocks like Samsung
Electronics and SK Hynix. A complete reversal of fortunes Just a year ago, Korean crypto exchanges were routinely
outpacing the country’s stock market in daily turnover. In July 2025, exchanges averaged around 17 trillion won in
daily volume, comfortably exceeding the KOSPI’s 10 to 15 trillion won average. Fast forward to today, and crypto
volumes represent roughly 2% of KOSPI’s daily turnover. Advertisement Top exchanges are bleeding revenue as a
result. First-quarter 2026 financials showed declines of more than 50% year-over-year for major platforms. The kimchi
premium goes negative Perhaps the most telling indicator of shifting sentiment is what happened to the so-called
“kimchi premium,” the price differential that historically made Korean crypto markets more expensive than
global counterparts. For years, this premium reflected intense local demand, sometimes pushing Bitcoin and Ethereum
prices 5% to 10% higher on Korean exchanges than on Coinbase or Binance. That premium has now flipped negative, a signal
that local demand has genuinely evaporated rather than simply cooling off. South Korea implemented the Virtual Asset
User Protection Act in July 2024, introducing stricter regulatory requirements for exchanges and additional safeguards
for retail investors. The combination of tighter rules and a roaring stock market created a perfect storm for crypto
volume decline. Not dead, just sleeping In mid-July 2026, when the KOSPI experienced a roughly 4% intraday correction,
trading volumes on Upbit, South Korea’s dominant exchange, spiked over 1,400% in a single day. What this means for
investors For crypto exchanges specifically, the revenue picture is concerning. A 50%-plus revenue decline in Q1 2026
puts pressure on smaller platforms that lack the balance sheet to weather extended dry spells. The mid-July Upbit spike
demonstrates that Korean retail capital has not left the crypto ecosystem permanently, but is currently concentrated in
equity positions. Disclosure: This article was edited by Editorial Team. For more information on how we create and
review content, see our Editorial Policy. Loading more articles... You've reached the end Follow Us Quick Links Bitcoin
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