South Korean Crypto Exchange Profits Plunge 78% in H1 2026 Amid Trading Slump

Operating profits at South Korean crypto exchanges fell 78% in the first half of 2026 as trading activity, market valuations and customer deposits all declined, according to fresh data from the Korea Financial Intelligence Unit (KoFIU).

Released on Thursday, the regulator's survey showed that average daily trading volume at domestic virtual asset exchanges dropped 44% compared with the previous six months. Market capitalization fell 33%, won-denominated customer deposits slid 35%, and total exchange sales declined 41%. The number of accounts eligible to trade rose just 0.4%, indicating that user participation held steady even as per-account activity collapsed. The survey tracked 26 registered virtual asset service providers — including 17 exchange operators and nine custody and wallet providers — covering activity from January 1 through June 30, 2026.

The figures highlight a clear rotation by South Korean retail investors away from crypto and into equities. Korean outlet ChosunBiz reported that the value of crypto held by Korean investors fell 50.2% to roughly 60.6 trillion won ($41.4 billion) over the year ending in May, attributing the decline to capital flowing into domestic stocks. A Cointelegraph analysis in July corroborated the trend, finding that combined average daily trading volume across the country's five major platforms — Upbit, Bithumb, Coinone, Korbit and Gopax — had fallen about 89% year over year during comparable seven-day windows. Over the 12 months to July 22, the KOSPI benchmark stock index more than doubled.

Cointelegraph contacted Bithumb and Upbit operator Dunamu for comment. Separately, South Korea has moved to lower its Travel Rule threshold for crypto transfers, underscoring continued regulatory scrutiny on the sector even as retail engagement wanes.