South Korea crypto outflows hit $60B as exchange profits fall
South Korea’s Financial Services Commission (FSC) said crypto outflows reached 90 trillion won (about $60B) in 2H 2025, up 14% from the first half. The outflows were linked to cross-border transfers, with regulators “presuming” assets moved overseas for arbitrage and similar activity, often to overseas platforms and private wallets.
Despite higher crypto outflows, exchange usage kept growing: accounts rose to 11.1 million (+3%) and customer deposits climbed 31% to about 8.1 trillion won (~$5.4B). But profitability deteriorated. For 18 active exchanges, operating profit fell 38% to 380.7 billion won (~$253.4M), while trading activity weakened—average daily trading volume fell 15% to 5.4 trillion won (~$3.6B).
Market conditions also turned softer. Total crypto market cap in South Korea was estimated at 87.2 trillion won (~$58B) at end-2025, down 8% from mid-year. Overall, rising crypto outflows alongside falling volumes and exchange earnings suggests a near-term risk-off backdrop for exchange-related flows.
Bearish
The reports show crypto outflows rising while exchange profitability and trading volume both fell. Even with more accounts and higher deposits, weaker market participation and softer prices reduced revenue. For traders, this combination often signals lower near-term liquidity on local venues and less incentive for flow to stay domestically, increasing the probability of volatility around exchange-related supply. In the short term, tighter compliance-driven outflow patterns can drain available liquidity and dampen arbitrage activity; in the long term, stricter enforcement and monitoring may reshape where capital can efficiently move, keeping sentiment cautious.