South Korea exchanges record $60B crypto outflows as profits fall

South Korean crypto exchanges recorded large capital outflows in the second half of 2025, even as user activity and deposits continued to grow. 

New data from the Financial Services Commission showed that more funds moved to overseas platforms and private wallets during the period. The report also showed weaker profits and lower trading activity across the local market.

The Financial Services Commission said crypto outflows from South Korean exchanges reached 90 trillion won, or about $60 billion, in the second half of 2025. That marked a 14% rise from 78.9 trillion won, or $52.5 billion, in the first half of the year.

The regulator linked part of that movement to cross-border trading activity. In its report, the FSC said, 

”It is presumed that virtual assets are being transferred abroad for arbitrage and other similar activities.”

The statement pointed to overseas platforms and private wallets as major destinations for those transfers.

The report showed that more people continued to use local crypto exchanges despite the rise in outflows. By the end of 2025, the number of exchange accounts reached 11.1 million, up 3% from June 2025.

Customer deposits rose at a faster pace. The FSC said deposits climbed 31% to 8.1 trillion won, or about $5.4 billion, during the second half of the year. The figures showed that users kept adding funds to exchanges even as market conditions turned weaker.

In addition, the growth in accounts and deposits did not lift earnings for exchange operators. The country’s 18 active exchanges posted 380.7 billion won, or $253.4 million, in operating profit in the second half. That figure was down 38% from 617.8 billion won, or $411.2 million, in the first half.

Trading activity also moved lower during the period. The FSC estimated average daily trading volume at 5.4 trillion won, or $3.6 billion, which was 15% lower than in the first half. The regulator said lower crypto prices near the end of 2025 likely weighed on exchange revenue and market activity.

Market value also moved lower

The report estimated South Korea’s total crypto market capitalization at 87.2 trillion won, or about $58 billion, at the end of 2025. That was down 8% from the first half of the year and reflected softer market conditions across major digital assets.

The broader market remained below its October 2025 peak, when bitcoin reached an all-time high of about $126,080. The FSC data showed that while local participation stayed firm, weaker prices and lower volumes put pressure on exchange performance in the second half.