South Korea crypto exchange profits fall 78% in H1 amid trading slump

South Korean crypto exchanges reported a staggering 78% decline in operating profits during the first half of 2026, as trading volumes, market capitalization and customer deposits took a nosedive. According to new government data released by the Korea Financial Intelligence Unit (KoFIU), average daily trading activity at domestic virtual asset exchanges plummeted by 44% compared to the previous six months.

Simultaneously, market capitalization dropped by 33%, while won-denominated deposits fell 35%. Despite the decline in trading, exchange sales decreased by 41%, while the number of eligible accounts rose marginally by 0.4%. The KoFIU survey encompassed 26 registered virtual asset service providers, comprising 17 exchange operators and nine custody and wallet providers, and covered activities from January 1st to June 30th of the year.

The data highlights a shift in South Korean retail investors' focus from cryptocurrencies to the country's stock market. In May, the value of crypto held by South Korean investors dwindled by 50.2% to 60.6 trillion won ($41.4 billion) over approximately a year. Market analysts suggest that capital is flowing towards stocks, as evidenced by the decline in crypto holdings.

A Cointelegraph analysis from July found that combined average daily trading volume across major exchanges such as Upbit, Bithumb, Coinone, Korbit, and Gopax had plummeted by 89% year-over-year during comparable seven-day periods. Meanwhile, South Korea's benchmark stock index, the KOSPI, had more than doubled over the 12 months leading up to July 22nd. Coindetelegraph reached out to Bithumb and Upbit for comment.