- South Korean investors’ crypto holdings fell by more than 60 trillion won over about a year, according to local reporting.
- FIU/FSS survey data showed average daily trading volume fell 15%, from 6.4 trillion won to 5.4 trillion won.
- Stablecoin holdings reached 871.9 billion won by year-end, showing continued demand for dollar-linked tokens.
South Korea’s retail crypto market has contracted sharply from its late-2025 peak, with investor holdings dropping by more than 60 trillion won (AU$56.3 billion) as trading volumes weakened and domestic equities pulled capital away from digital assets.
Local reporting from The Chosun Daily said South Korean investors’ crypto holdings more than halved over about a year, with falling token prices and a stronger stock market both contributing to the drawdown.
The Bank of Korea said total virtual-asset value began 2025 at 121.8 trillion won (AU$114.3 billion) and fell to 89.2 trillion won (AU$83.6 billion) by June as investor sentiment weakened.
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Trading Volumes Slide
The Korea Financial Intelligence Unit and Financial Supervisory Service’s second-half 2025 virtual-asset provider survey showed average daily transaction volume fell 15%, from 6.4 trillion won (AU$6 billion) in the first half to 5.4 trillion won (AU$5 billion) in the second half.
Asiae, citing the Bank of Korea’s 2025 Payment and Settlement Report, said average daily virtual-asset trading volume hit a yearly low of 2.7 trillion won (AU$2.5 billion) at the end of last year. It also said investors holding accounts at the five domestic virtual-asset exchanges stood at about 21.63 million.
It shouldn’t be so surprising given that Korean equities have been rallying, and more retail investors appear to have rotated away from speculative crypto trading and back into stocks, which makes sense considering the current state of geopolitics and global markets.
This makes even more sense when stablecoins were more resilient in parts of the data. Asiae said stablecoin holdings reached 871.9 billion won (AU$818 million) by year-end, while Aju Press reported that stablecoin holdings more than doubled as investors sought dollar-denominated assets.
What’s more, stablecoins are also being integrated into popular apps like DoorDash and Meta, as Crypto News Australia reported.
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