Key highlights:
- South Korean crypto exchange operating profits plunged 78% to KRW81.6 billion in H1 2026.
- Average daily crypto trading volume dropped 44% to KRW3.1 trillion, while won deposits fell 35%.
- Tradable accounts edged higher despite weaker activity, with accounts holding under KRW1 million rising to 8.63 million.
The latest reports reveal that South Korean crypto exchanges are witnessing a sharp slowdown in business this year. Operating profits dropped by about 78% in the first half of 2026. This is mainly driven by a significant decline in trading activity as well as a decrease in customer deposits and crypto assets held on domestic platforms.
South Korean crypto exchange profits fell
The crypto exchanges of South Korea reportedly had a weaker first half of 2026 as traders became less active. According to the Korea Financial Intelligence Unit (KoFIU), daily trading volume saw a drastic decline to KRW3.1 trillion, down by about 44% from the previous half.
More alarming is how this negative sentiment affected crypto exchange earnings. Sales dropped to 41%, while operating profits slipped from KRW374.8 billion in the previous six-month period to just KRW81.6 billion in the first half of 2026. This represents a 78% decline in operating profits.
In addition, the amount of funds customers held on these crypto exchanges also fell. Won-denominated deposits dropped to KRW5.2 trillion from KRW8.1 trillion at the end of 2025. At the same time, the total value of crypto assets held through South Korean exchanges dropped 33%. It fell from KRW87.2 trillion to KRW58.9 trillion.
At the same time, it is worth noting that the slowdown has significantly impacted crypto exchange businesses. As the trading volume declined, it meant that there were fewer opportunities to generate transaction-related revenue.
Crypto user base holds up despite lower trading
Interestingly, the sharp fall in trading activity comes in contrast with the number of accounts, which did not decline. According to KoFIU reports, there have been 11.175 million tradable accounts at the end of June, up from 11.126 million six months earlier. This shows that the weaker market activity was not mainly due to people leaving the market.
The main reason is that users are becoming less active. Trading volumes, customer deposits, and crypto holdings declined during the period. Even as the overall number of tradable accounts remained almost unchanged.
More small crypto accounts emerge in South Korea
Meanwhile, the South Korean crypto market has seen a major shift in users, especially regarding different age groups. The report stated that users in their 40s became the largest group, more than the 30s. This means that the country’s crypto participation is not limited to younger people.
The data also show a rise in smaller crypto accounts. The number of accounts with less than KRW1 million in crypto surged from nearly 370,000 to 8.63 million. These accounts made up a large share of the overall user base.
Source:: South Korea Crypto Exchange Profits Plunge 78% as Trading Activity Dries Up