South Korea’s domestic crypto trading activity has fallen sharply compared with the country’s stock market.
Summary
- South Korea’s crypto trading volume fell to 8% of KOSPI activity in May this year.
- The decline marks a sharp reversal from December 2024, when crypto trading beat stocks heavily.
- Negative Bitcoin Korea Premium data shows weaker local demand compared with overseas crypto markets.
According to Digital Asset, total trading volume across Upbit, Bithumb, Coinone, Korbit, and Gopax reached only 8% of KOSPI trading volume in May, based on data through May 26.
That means local crypto trading has fallen to less than one-tenth of KOSPI activity. The report said the gap widened after the crypto market decline in October 2025, while South Korean stocks continued to push toward record levels.
The shift marks a major reversal from late 2024. In December 2024, trading volume in won-based crypto markets reached 323% of KOSPI volume after a strong digital asset rally linked to Donald Trump’s U.S. election win.
At the time, Trump had said he wanted to “make the United States the capital of digital assets.” That helped fuel risk appetite across the market, but the momentum did not last in South Korea.
KOSPI rally pulls attention from crypto
Digital Asset reported that the won-based crypto market’s trading volume fell 71% between August 2025 and May 2026. Over the same period, KOSPI trading volume rose 243%, helped by strong stock market demand.
The report linked the stock rally to the semiconductor boom and government-led efforts to support the local equity market. As stocks gained strength, crypto trading lost relative weight in the domestic market.
This trend fits earlier market data. As previously reported by crypto.news, South Korean crypto holdings fell from $83.3 billion at the end of January 2025 to $41.4 billion by the end of February 2026. Daily trading volume across the five major exchanges also dropped from about $11.6 billion in December 2024 to about $3 billion in February.
The same report said won deposits at exchanges declined from 10.7 trillion won at the end of 2024 to 7.8 trillion won, pointing to weaker cash demand for crypto trading.
Bitcoin Korea Premium turns negative
South Korea’s crypto weakness also appears in the Bitcoin Korea Premium, often called the Kimchi Premium. Digital Asset cited CryptoQuant data showing the indicator has stayed negative for several recent sessions.
A negative premium means Bitcoin trades cheaper on South Korean exchanges than on overseas venues. That usually points to weaker local buying pressure compared with global markets.
The indicator turned negative in March, briefly moved positive in April, and then returned to negative territory, according to the report. That pattern shows local demand has not fully recovered despite activity in global crypto markets.
The weak premium adds context to the trading volume drop. It suggests the slowdown is not only a volume issue, but also a demand issue among Korean crypto traders.
Regulation adds another pressure point
The slowdown comes as South Korea prepares stricter rules for crypto investors and exchanges. As previously reported, the country plans to tax virtual asset gains above 2.5 million won from Jan. 1, 2027, with a combined 22% tax rate.
The National Tax Service is also preparing guidance with Upbit, Bithumb, Coinone, Korbit, and Gopax. The first full filing period is expected in May 2028 for income earned in 2027.
South Korea has also moved toward tighter overseas transfer checks. Planned rules could increase reporting around transfers involving foreign exchanges and private wallets, while local industry groups have warned that wider checks may raise delays and user costs.
