South Korea Crypto Turnover Drops 55% as Retail Investors Exit

- Trading volume on Korea’s five main won-based crypto exchanges fell sharply in H1 2026 - Exchanges shift toward institutional services and new business models amid retail exodus Trading on South Korea’s top five won-based cryptocurrency exchanges — Upbit, Bithumb, Coinone, Korbit, and Gopax — plunged 54.6% year-over-year in the first half of 2026 as retail investors exited the sector in favor of the surging KOSPI stock market. On August 1, 2026, Cointelegraph reported that daily average crypto trading volumes in July fell to just $305 million, an 89% drop from $2.82 billion one year earlier. As a result, crypto trading now comprises only 2% of the KOSPI’s daily turnover, compared to near parity the prior year, while over the same period the KOSPI index soared 114%. Amid this steep contraction, exchanges are rapidly overhauling their business strategies. Upbit, for example, grew its market share to 67.4% by waiving fees on stablecoin trades and consolidating liquidity even as total industry turnover shrank. In addition, Coinone launched stock-trading services and partnered with Korea Investment & Securities after receiving new equity investment, thereby seeking to diversify beyond pure crypto trading. Meanwhile, Korbit, now owned by Mirae Asset Consulting, is relaunching with a focus on institutional clients, stablecoins, custody, and tokenized assets, and the company is shifting away from retail operations. Bithumb has sought partnerships with securities firms but remains hampered by ownership and regulatory challenges, while Gopax has continued its recovery efforts from its previously suspended GoFi deposit product but still faces regulatory hurdles. The industry is therefore contending with fierce competition, falling liquidity, and compressed asset prices. In addition, the upcoming crypto gains tax set to take effect on January 1, 2027, is poised to further dampen trading volumes. In response, Korean exchanges are accelerating shifts toward institutional services, regulatory compliance, and diversified offerings beyond retail-focused crypto trading.