South Korea’s Crypto Exchanges See Profits Collapse…
By Damilola Esebame
AI summary of the source article
South Korea's 17 registered cryptocurrency exchanges generated 81.6 billion won in combined operating profit during the first half of 2026, marking a 78% drop from late 2025 according to a Korea Financial Intelligence Unit survey. Average daily trading volume across the five won-denominated platforms plunged 44% to 3.1 trillion won, while total crypto market capitalization on domestic exchanges decreased 33% to 58.9 trillion won. Operating losses for nine custody and wallet providers doubled to 18.6 billion won. The downturn was fueled by retail capital shifting into a surging domestic stock market and comes shortly before a 22% crypto tax takes effect in January 2027.
Why it matters
Exchanges that rely heavily on retail spot trading commissions face an incoming 22% tax regime that could further suppress the trading volumes required to recover profitability.
Key facts
- Combined operating profit for 17 registered crypto exchanges dropped 78% to 81.6 billion won in H1 2026.
- Customer deposits at the five won-denominated exchanges fell 35% from 8.1 trillion won to 5.2 trillion won.
- Operating losses for nine custody and wallet providers doubled from 9.3 billion won to 18.6 billion won.